Basket Corp. produces and sells a single product. Standards have been established for the product as follows: Direct Materials per unit Direct Labor per unit 8 pounds @ $ 4.00 per pound 3 hours @ $ 13.00 per hour Actual cost and usage figures for the past month follow: Units produced Direct materials used 800 4,200 pounds Direct materials purchased 4,600 pounds Cost of direct materials purchased $ 15,400 Direct labor employed 2,000 hours Cost of direct labor employed $ 11,200 Required: Compute the variances for the following. 1. The labor rate variance 2. The labor efficiency variance