4: Computing Direct Materials and Direct Labour Variances Essential Suppliers Inc. manufactures Custom shelves in a small manufacturing facilitiy. The shelves are made from recycled wood. Essential Suppliers has 50 employees. Each employee presently provides 37.5 hours of labor per week. Information about a production week is as follows: Standard wage rate per hour Standard labor time per unit of shelf Standard number of yards of wood per unit of shelf Standard price per yard of wood Actual price per yard of wood Actual yards of wood used during the week Number of units of shelves produced during the week Actual wage rate per hour Actual hours for the week (50 employees x 37.5 hours) Required: $18.00 $7.00 $7.50 48 minutes 2.5 yards 6,900 yards 3,000 units 1875 hours $19.00 A. Determine the followings Material Variances and indicate if they are "favorable" or "unfavorable" Use Excel formula or show your working clearly to obtain partial marking. Direct Materials Price Variance: Direct Materials Quantity Variance: Total Direct Materials Cost Variance: B. Determine the followings Labor Variances and indicate if they are "favorable" or "unfavorable" Direct Labor Rate Variance: Direct Labor Time Variance: Total Direct Labor Cost Variance