A manufactured product has the following information for June. Standard Actual Direct materials (5 lbs. @ $7 per lb.) 35,400 lbs. @ $7.20 per lb. Direct labor (2 hrs. @ $16 per hr.) 13,800 hrs. @ $16.50 per hr. Overhead (2 hrs. @ $13 per hr.) $ 188,500 Units manufactured 7,000 Exercise 23-10 Direct labor variances LO P2 AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable.