Germ Free produces hand sanitizer. It uses units as the cost driver for overhead and employs a standard costing system. The following information was provided by the company's controller:

Actual Data

Standard and Budgeted Data

Produced

14,400 units

Budgeted units

14,200 units

Materials purchased

4,600 lbs. for a total of $32,660

Budgeted materials

0.35 lb. @ $7.00 per lb.

Materials used

4,560 lbs.

Budgeted labor

0.5 hours @ $12.10 per hour

Labor worked

7,520 hrs. costing $91,368

Budgeted variable overhead

$39,050

Actual overhead

Fixed $51,800; Variable $38,100

Budgeted fixed overhead

$51,120

a.Calculate the material price and quantity variances and indicate if each is favorable or unfavorable.

b.Calculate the labor rate and efficiency variances and indicate if each is favorable or unfavorable.