1. Al Fara Corporation makes a product with the following standard costs:

Direct material: 10 ounces at $1.50 per ounce	$ 15.00
Direct labor: 0.6 hours at $30.00 per hour	18.00
Variable manufacturing overhead: 0.6 hours at $10.00 per hour	6.00
Total standard variable cost per unit	$27.00
Budgeted units to be produced	2,000

During October, 1,900 unitswere produced. The company reported the following results concerning this product at the end of October:

Material purchased: 18,000 ounces at $2.00 per ounce	$36,000
Direct labor: 1,100 hours at $30.50 per hour	$33,550
Variable manufacturing overhead costs incurred	$12,980

1. Compute the Direct materials price variance (Spending) and quantity variance for the month of October. State if these variances are favorable or unfavorable. (2pts)
2. Compute the Direct Labor rate variance (Spending) and labor efficiency variance (quantity) for the month of October. State if these variances are favorable or unfavorable. (1pt)