A company reports the following for one of its products.

Direct materials standard (3 pounds @ $2 per pound)	$ 6	per unit
Actual direct materials used (AQ)	260,000	pounds
Actual units produced	70,000	units
Actual cost of direct materials used	$ 455,000

AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price Compute the direct materials price and quantity variances and identify each as favorable or unfavorable.

A company reports the following information for its direct labor.

Actual hours of direct labor used	66,000
Actual rate of direct labor per hour	$ 15
Standard rate of direct labor per hour	$ 13
Standard hours of direct labor for units produced	67,600

AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate Compute the direct labor rate and efficiency variances and identify each as favorable or unfavorable.