Direct Materials and Direct Labor Variances Berner Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for one bar of the candy: Direct materials (8.20 oz. @ $0.09) Direct labor (0.07 hr. @ $18.00) Standard prime cost $0.74 1.26 $2.00 During the first week of operation, the company experienced the following actual results: a. Bars produced: 145,000. b. Ounces of direct materials purchased: 1,189,300 ounces at $0.08 per ounce. c. There are no beginning or ending inventories of direct materials. d. Direct labor: 10,010 hours at $17.20. Required: Instructions for parts 1 and 2: If a variance is zero, enter "0" and select "Not applicable" from the drop down box. 1. Compute price and usage variances for direct materials. Materials Price Variance Materials Usage Variance 11,893 27 Favorable Unfavorable 2. Compute the rate variance and the efficiency variance for direct labor. Labor Rate Variance 8,008 Favorable Labor Efficiency Variance 2.520 Favorable