Materials and Labor Variances Deporte Company produces single-colored t-shirts. Materials for the shirts are dyed in large vats. After dying the materials for a given color, the vats must be deaned and prepared for the next batch of materials to be colored. The following standards for changeover for a given batch have been established: Direct materials (2.4 lbs. $0.95) $2.28 Direct labor(0.75 hr $2.40) 5.55 Standard prime cost $7.83 During the year, 79,500 pounds of material were purchased and used for the changeover activity. There were 30,000 batches produced, with the folowing actual prime costs: Direct materials $66,780 Direct labor $173,188 (for 22.450 hrs.) Reged: Compute the materials and bor variances associated with the changeover activity, labeling each variance as favorable or unfavorable. Favorable Price variance Usage variance Lahor Variances Unfavorabile Rate variance Unfavorable Efficiency variance Feedback Previous Next >