3. The following information comes from the records of Muney Company. Required: Compute the direct materials price and quantity variances, direct labor rate and efficiency variances and state whether the variance is favorable or unfavorable. Hint: Consider calculating the total cost variances first - Total cost variance for DM and total cost variance for DL just as we did in the Class Examples for this chapter. Also, recall that the net of the price and quantity variances should equal the total cost variance. Checks: Direct materials price variance is $3,700 unfavorable. Direct labor rate variance is greater than $25,000 but less than $26,000 and favorable. (4 points) Actual costs and quantities: Direct materials used Direct labor hours used Direct labor rate per hour 25,000 units were produced during the period 37,000 feet @ $6.20 per foot 50,660 hours $16.50 Standard costs and quantities per unit: Direct materials 1.5 ft.@$6.10 per ft 2 hours $17 per hour Direct labor Direct Material: Q AP Q SP Direct materials price variance Q SP SQ SP Direct materials quantity variance HINT: Standard Quantity (S0) 25,000 units 1.5 ft./unit 37,500 ft. Direct labor: AH AR H SR Direct labor rate variance AH SR SH SR Direct labor efficieney variance HINT: Standard Hours (SH) 25,000 units 2 hours/unit-50,000 hours