Palermo Statuary manufactures bust statues of famous historical figures. All statues are the same size. Each unit requires the same amount of resources. The following information is from the static budget for 2020:

Expected production and sales 6,500 units.

Expected selling price per unit $650.

Total fixed costs $1,450,000.

Standard quantities, standard prices, and standard unit costs follow for direct materials and direct manufacturing labor:

Standard Quantity

Standard Price

Standard Unit Cost

Direct materials

16 pounds

$13 per pound

$208

Direct manufacturing labor

3.9 hours

$30 per hour

$117.

During 2020, actual number of units produced and sold was 5,700, at an average selling price of $700. Actual cost of direct materials used was $1,193,100 (61,500 pounds at $19.40 per pound). Actual direct manufacturing labor costs were $658,800 (18,000 actual direct manufacturing labor-hours at $36.60 per hour). Actual fixed costs were $1,190,000. There were no beginning or ending inventories.

Actual
	Results
Output units
Revenues
Direct materials
Direct manufacturing labor
Fixed costs
Total costs
Operating income

Flexible-Budget		Flexible
Variance		Budget

Sales-Volume		Static
Variance		Budget

Requirement 2. Compute price and efficiency variances for direct materials and direct manufacturing labor.

Compute the price and efficiency variances for direct materials. Label each variance as favorable (F) or unfavorable (U).

Price variance
Efficiency variance

Compute the price and efficiency variances for direct manufacturing labor. Label each variance as favorable (F) or unfavorable (U).

Price variance
Efficiency variance