coffee mugs that it sells to other companies for customizing with their own logos$.$ Bria prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of $60,100$ coffee mugs per month:

$($Click the icon to view the cost data.$)$

Actual cost and production information for July $2024$ follows:

$($Click the icon to view actual cost and production information.$)$

Read the requirements.

Requirement $1.$ Compute the cost and efficiency variances for direct materials and direct labor.

Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable $($F$)$ or unfavorable $($Abbreviations used: $AC=$ actual cost; $AQ=$ actual quantity; FOH$=$ fixed overhead; $SC=$ standard cost; $SQ=$ standard quantity.$)$

$\backslash$table$[[,,$Formula,Variance$],[$Direct materials cost variance,$=,,=$