Consider the following data collected for Excel Homes Inc.

Direct Materials Direct Manufacturing Labor

Cost incurred	$208,000	85,000
Actual inputs X standard prices	211,000	81,000
Standard inputs allowed for actual output X standard prices	225,000	80,000

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-bidget variance