? If actual costs are greater than standard costs, the variance is unfavorable V , alternatively, if actual costs are less than standard costs, the variance is favorable Direct Materials Cost Variance Calculating Direct Materials Cost Variance, you can see that the actual costs are higher V than standard and the actual quantity purchased and used is less * v than standard. The two variances are combined for a total favorable V direct material cost variance of $ Direct Labor Cost Variance Calculating Direct Labor Cost Variance, you can see that the actual costs are higher V than standard and the actual hours are less than standard. The two variances are combined for a total favorable * v direct labor cost variance of $ Feedback Check My Work The illustrations provide the information to complete the problem. The standard cost sheet for a product is shown. Standard Cost Manufacturing Costs Standard price Standard Quantity per unit Direct materials $4.60 per pound 5.50 pounds $ 25.30 Direct labor $12.31 per hour 2.10 hours $ 25.85 Overhead $2.40 per hour 2.10 hours $ 5.04