A product of Chun SARL has the following standard costs. Variable overhead is applied on the basis of direct labor hours.

Inputs:	Unit of Input	Units per item	Price or rate
Direct Materials:	meters	135	$114/meter
Direct Labor:	direct labor hours	39	$19/direct labor hour
Variable Overhead:	direct labor hours		$21/direct labor hour

The following results were reported for the month of July. The direct material purchases variance is computed when the materials are purchased.

Actual output:	546 items
Raw Materials used:	79,586 meters
Raw Material purchased:	90,266 meters
Actual direct labor hours:	20,748 hours
Actual cost of raw materials purchased:	$9,658,462
Actual direct labor cost:	$435,708
Actual variable overhead cost:	$477,204

What are each of the following variances, and are they favorable or unfavorable?

Part 1: Direct Labor rate variance:

A. $41,496 Unfavorable

B. $41,496 Favorable

C. $11,466 Favorable

D. $11,466 Unfavorable

Part 2: Direct Labor efficiency variance? $__________ (Favorable/Unfavorable?)

Part 3: Direct Material price variance: $___________ (Favorable/Unfavorable?)

Part 4: Direct Material quantity variance:

A. $669,864 Unfavorable

B. $669,864 Favorable

C. $1,255,522 Favorable

D. $1,255,522 Unfavorable