Exercise 23-16 Computation and interpretation of labor variances LO P2 After evaluating Null Company's manufacturing process, management decides to establish standards of 2 hours of direct labor per unit of product and $16.30 per hour for the labor rate. During October, the company uses 13,200 hours of direct labor at a $217,800 total cost to produce 6,900 units of product. In November, the company uses 23,300 hours of direct labor at a $386,780 total cost to produce 7,300 units of product. AH Actual Hours SH Standard Hours AR Actual Rate SR- Standard Rate AQ Actual Quantity SQ Standard Quantity AP Actual Price SP- Standard Price (1) Compute the direct labor rate varlance, the direct labor efficiency varlance, and the total direct labor cost varlance for each of these two months. Classify each varlance as favorable or unfavorable