Materials and Labor Variances have been established: \begin{tabular}{lc} Direct materials (2.4 lbs. @ \$0.95) & $2.28 \\ Direct labor (0.75 hr. @ \$7.40) & 5.55 \\ & $7.83 \\ \hline \end{tabular} Direct materials $66,780 Direct labor $165,019(for22,450hrs.) Required: Compute the materials and labor variances associated with the changeover activity, labeling each variance as favorable or unfavorable. Material Variances \begin{tabular}{lll} Price variance & $112,525 & Favorable \\ Usage variance & $ & Unfavorable \\ Labor Variances & & \\ Rate variance & $ & Favorable \\ Efficiency variance & $ & Favorable \end{tabular}