Digital Boards, Inc. manufactures a product that has the following standard costs:

Direct materials: 10 sq. mm. at $8.50 per sq. mm.$85.00

Direct labor: 6 hours at $20.00 per hour120.00

Total$208.00

The following information pertains to July:

Direct material costs 10,000 sq. mm. at $9.00 per sq. mm., or $90,000

(quantity purchased and quantity used are the same).

Direct labor: 6,800 hours at $19.00 per hour, or $129,200

Actual completed production: 1,100 units

Required:

Calculate the following variances and indicate whether each variance is favorable or unfavorable using F for favorable and U for unfavorable.

Direct-material price

Direct-material quantity

Direct-labor rate

Direct-labor efficiency

Show computations here: