each variance listed. Indicate whether the effect is favorable or unfavorable. Assume that the standards are not changed in response to these situations. Note: Round your answers to two decimal places. hour. Sally works an average of 140 regular hours per month. Effect on labor rate variance } Defective units are identified prior to use and are not returnable. Effect on materials price variance $ Effect on materials quantity variance $ produce only 24 units per hour instead of the standard 36 units per hour. (Consider only the effect on Department A labor variances.) Effect on labor rate variance $ Effect on labor efficiency variance \$