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

	Direct	Direct
	Materials	Manufacturing Labor
Costs incurred: Actual inputs x actual prices	$200,000	$91,000
Actual inputs x standard prices	209,000	90,000
Standard inputs allowed for actual output
x standard prices	229,000	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