Excel SIM: Basic Variance Analysis and the Impact of Variances on Unit Costs 1. Compute the direct materials price and quantily variances and explain their significance. 2. Compute the direct labot rate and efticiency variances and explain their significance 3. Compute the variable manufacturing owerhead rate and effidency variances and explain their significance. Standards for one of Patterson, Inc.'s products is shown below, along with actual cost data for the month: 3 Direct materials