Based on the data presented in the Spreadsheet below (Variances tab), complete the following calculations.

• Calculate the material variances.
• Calculate the labor variances.

Complete your calculations by filling the in highlighted cells. Discuss your observations about the variances and ways to plan to improve any of the variances.

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Actual Cost of Direct Materials	$ 225,000
Standard Cost of Direct Materials	$ 224,800
Actual Materials Used	30
Standard Materials Used	31
Actual Direct Labor Rate	$ 15.50
Standard Labor Rate	$ 15.00
Actual Hours Worked	45
Standard Hours Worked	40
	Amount	Favorable/ Unfavorable
Calculate Materials Variances:
Materials Price Variance
Materials Quantity Variance
Calculate Labor Variances:
Labor Rate Variance
Labor Efficiency Variance