Miguez Corporation makes a product with the following standard costs Standard Quantity or Standard Price or Standard Cost Rate Direct materials Direct labor Variable overhead Hours 2.3 liters $ 7.80 per liter e.7 hours $22.ee per hour 0.7 hours 2.ee per hour $16.1e $15.40 1.40 The company budgeted for production of 2,600 units in September, but actual production was 2,500 units. The company used 5,440 liters of direct matorial and 1,680 direct labor hours to produce this output. The company purchased 5.800 liters of the direct material al $7.20 per liter. The actual direct labor rate was $2410 per hour and the actual variable overhead rate was $1.90 per hour The company applies variable overhead on the bosts of direct labor hours, The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for September is $3,675 F $3,528 U $3,528 F $3,675 U TB MC Qu. 10-89 Ravena Labs., Inc. makes a single product which.. Ravena Labs., Inc. makes a single product which has the following standards: Direct materials: 2.5 ounces at $20 per ounce Direct labor: 1.4 hours at $12.50 per hour Variable manufacturing overhead: 1.4 hours at 3.50 per hour Variable manufacturing overhead is applied on the basis of standard direct labor-hours. The following data are available for October: 3,750 units of compound were produced during the month There was no beginning direct materials inventory. Direct materials purchased: 12.000 ounces for $225,000 The ending direct materials inventory was 2.000 ounces Direct labor-hours worked: 5.600 hours at a cost of $67,200 . Variable manufacturing overhead costs incurred amounted to $18.200 Variable manufacturing overhead applied to products: $18.375 The labor efficiency varlance for October is: The labor efticiency variance for October is Multiple Choice $1.400 Favorable $1,900 Unfavorable $3,750 Favorable $4,375 Unfavorable