Below is a static budget and actual results for ABC Company for their sales, direct materials expense and direct labor expense for 2016.

	Static Budget	Actual Results
Sales Units	700	750
Sales Revenue	$9,800.00	$16,500.00
Direct Materials	$5,250.00	$5,775.00
Direct Labor	$11,812.50	$10,871.25

The standard cost for direct materials is $2.50 per yard and the company assumes it will use 3 yards of material for each unit produced. The standard labor hours that it takes to produce a unit is 1.50 hours, at a rate of $11.25 per hour. The company actually used 2,100 yards of material at a cost of $2.75 per yard and it took 975 hours to produce 750 units sold, at a rate of $11.15 per hour.

Calculate the direct materials usage and price variances and state whether they are favorable or unfavorable.

Calculate the direct labor rate and efficiency variances and state whether they are favorable or unfavorable.