During June, Danby Companys material purchases amounted to 7,400 pounds at a price of $7.90 per pound. Actual costs incurred in the production of 2,300 units were as follows: Direct labor: $ 132,675 ($18.30 per hour) Direct material: $ 38,710 ($7.90 per pound) The standards for one unit of Danby Companys product are as follows: Direct Labor: Direct Material: Quantity, 3 hours per unit Quantity, 2 pounds per unit Rate, $18.20 per hour Price, $7.60 per pound Required: Compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efficiency variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)

Exercise 10-26 Straightforward Calculation of Variances (LO 10-1, 10-3) During June, Danby Company's material purchases amounted to 7,400 pounds at a price of $7.90 per pound. Actual costs incurred in the production of 2,300 units were as follows: The standards for one unit of Danby Company's product are as follows: Required: Compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efficiency variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance).)