Consider the following data collected for Cozy Homes, Inc.:

	Direct	Direct
	Materials	Manufacturing Labor
Costs incurred: Actual inputs x actual prices	$198,000	$89,000
Actual inputs x standard prices	207,000	88,000
Standard inputs allowed for actual output
x standard prices	227,000	83,000

requirement

Compute the price, efficiency, and flexible-budget variances for direct materials and direct manufacturing labor.

First compute the price, efficiency, and flexible-budget variances for direct materials. Label each variance as favorable (F) or unfavorable (U).

Price variance
Efficiency variance
Flexible-budget variance