3. Direct Labor (DL) Variances: Out to Get You, Ltd. has set the following standards for direct labor (DL) costs per unit for the good it manufactures:

Standard Hours: 1.2 DL hours per unit

Standard Rate: $14 per DL hour

During the month of August, the firm incurred the following actual DL costs to produce 2,900 units:

Actual Hours: 3,450 total DL hours

Actual Rate: $14.50 per DL hour

1. Calculate the DL cost variance. Indicate whether this variance is favorable (F) or unfavorable (U).
2. Calculate the DL rate variance. Indicate whether this variance is favorable (F) or unfavorable (U).
3. Calculate the DL efficiency variance. Indicate whether this variance is favorable (F) or unfavorable (U).