Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable.

Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured Standard (6 lbs. @ $8 per lb.) (3 hrs. @ $17 per hr.) (3 hrs. @ $12 per hr.) Actual 45,400 lbs. @ $8.10 per lb. 22,300 hrs. @ $17.50 per hr. $276,300 7,500 Exercise 23-10 Direct labor variances LO P2 AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable. Actual Cost x TAR 22,300 x $ 17.50 AH 22,300 X X SR $ 17.00 Standard Cost SH X SR 48,000 X $ 8.00 390,250 379,100 384.000 $ 11,150 $ 4,900 Direct labor rate variance Direct labor efficiency variance Total direct labor variance $ 11,150 Unfavorable 4.900 Favorable Unfavorable