Direct Materials and Direct Labor Variances At the beginning of June, Cornerstone Printing Company budgeted 12,000 books to be printed in June at standard direct materials and direct labor costs as follows: Direct materials $18,000 Direct labor 4,800 Total $22,800 The standard materials price is $0.5 per pound. The standard direct labor rate is $10 per hour. At the end of June, the actual direct materials and direct labor costs were as follows: Actual direct materials $16,800 Actual direct labor 4,500 Total $21,300 There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Cornerstone Printing Company actually produced 10,900 units during June Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number Direct materials quantity variance Unfavorable Unfavorable Direct labor time variance Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit). Learning Objective 3