After evaluating Pima Company's manufacturing process, management decides to establish standards of 1.4 hours of direct labor per unit of product and $15 per hour for the labor rate. During October, the company uses 3,720 hours of direct labor at $40,920 total cost to produce 4,000 units of product. In November, the company uses 4,560 hours of direct labor at $54,720 total cost to produce 3,500 units of product. Required 1) Compute the rate variance, the efficiency variance, and the total direct labor cost variance for each of these two months. For each variance, state whether favorable or unfavorable. Windser Company made 3,800 bookshelves using 23,200 board feet of wood costing $290,000. The company's direct materials standards for one bookshelf are 8 board feet of wood at $12 per board foot. Required 1) Compute the direct materials variances incurred in manufacturing these bookshelves. 2) Interpret the direct materials variances. What do you think is happening here