5 Exercise 7.2 Orion Corporation has established the following standards for the prime costs of one unit of its chief product, dartboards. Standard Cost Standard Quantity Standard Price or Rate Direct material OMR 36 12 pounds OMR 3 per pound Direct labor 2 hour OMR 2.5 per hour Total During June, Orion purchased 12,000 pounds of direct material at a total cost of OMR 35,000. The total wages for June were OMR 23,000, 70 percent of which were for direct labor. Orion manufactured 3,000 units during June, using 34,500 pounds of direct material and 6,500 direct-labor hours. Required: Compute the following variances for June, and indicate whether each is favorable or unfavorable. 1. The direct-material price variance. 2. The direct-material quantity variance. 3. The direct-labor rate variance. 4. The direct-labor efficiency variance