Maki, Inc. manufactures a product that has the following standard costs:

Direct materials: 40 yards at $2.70 per yard $108

Direct labor: 8 hours at $18.00 per hour $ 144

Total $252

The following information pertains to July:

Direct material purchased 42,500 yards at $2.78 per yard, or $118,150

Direct material used 36000 yard

Direct labor: 7,500 hours at $18.30 per hour, or $ 137,250

Actual completed production: 1050 units

Assume that the company computes variances at the earliest point in time.

Answer and Show Work:

required

calculate the direct- material price and quantity variances and the direct- labor rate and efficiency variances. indicate whether each variance is favorable or unfavorable.