34 Variance Analysis with Activity-Based Costing.Assume Mammoth Company uses activity-based costing to allocate variable manufacturing overhead costs to products. The company identified three activities with the following information for last quarter.

Activity	Standard Rate	Standard Quantity per Unit Produced	Actual Costs	Actual Quantity
Indirect materials	$2.40 per yard	7 yards per unit	$691,650	265,000 yards
Product testing	$1.50 per test minute	5 minutes per unit	$301,000	215,000 test minutes
Indirect labor	$4.50 per direct labor hour	4 hours per unit	$930,000	180,000 direct labor hours

Required:

Assume Mammoth Company produced 40,000 units last quarter. Make a variance analysis, Clearly label each variance as favorable or unfavorable.