alternatively, if actual costs are less than standard costs, the variance is favorable If actual costs are greater than standard costs, the variance is unfavorable Direct Materials Cost Variance Calculating Direct Materials Cost Variance, you can see that the actual costs are higher cost variance of $ 1,176 X. Direct Labor Cost Variance than standard and the actual quantity purchased and used is less than standard. The two variances are combined for a total favorable direct material Calculating Direct Labor Cost Variance, you can see that the actual costs are higher -1,176 X. than standard and the actual hours are less than standard. The two variances are combined for a total favorable direct labor cost variance of $ Feedback The standard cost sheet for a product is shown. Standard Cost Manufacturing Costs Direct materials Direct labor Overhead Standard price Standard Quantity $4.50 per pound $12.00 per hour per unit 5.80 pounds $26.10 2.40 hours $28.80 $2.20 per hour 2.40 hours $ 5.28 The company produced 3,000 units that required: 17,900 pounds of material purchased at $4.35 per pound 7,120 hours of labor at an hourly rate of $12.30 per hour Actual overhead in the period was $16,270 $60.18