Managerial Accounting ACT310 Spring 2020 - E-Learning TAP 5 (15%) v1 - Ch.10, Ch.14 Name: ID: Question 1 (40 points) During June, Danby Company's actual costs incurred in the production of 2,000 units were as follows: Direct labor: $116,745 ($18.10 per hour) Direct material: $30,660 ($7.30 per pound) The standards for one unit of Danby Company's product are as follows: Direct labor: Quantity, 3 hours per unit Rate, $18 per hour Direct material: Quantity, 2 pounds per unit Price, $7 per pound Required: 1. Compute the direct-material price and quantity variances. Indicate whether each variance is favorable or unfavorable. Show your calculations. (20 points) 2. Compute the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. Show your calculations. (20 points)