Chapter 10 Standard Costing and Varlance Analysis Exercises 10-52 and 10-53 Deporte Company produces single-colored T-shirts. Materials for the shirts are dyed in for the next barch of materials to be colored. The following standards for changeover for a Direct materials (2.4 lbs. s0.95) $2.28 large vats. After dying the materials given batch have been established for a given color, the vats must be cleaned and prepared Direct labor (0.75 hr.@$740) Standard prime cost hr.@$7.40) 5.55 $7.83 During the year, 79,500 pounds of material were purchased and used for the changeover activity. There were 30,000 batches produced, with the following actual prime costs: Direct materials Direct labor 63,000 $163.385 (for 22,450 hrs.) CTIVE Exercise 10-52 Materials and Labor Variances Refer to the information for Deporte Company above. Required: Compute the materials and labor variances associated with the changeover activity, labeling each variance as favorable or unfavorable