Part a: Thompson Company uses a standard cost system for its single product. The following data are available: Actual experience for the current year: Purchases of raw materials (12,000 yards at $13 per yard).. $156,000 Raw materials used. 12,000 yards Direct labor costs (10,200 hours at $10 per hour) $102,000 Actual variable overhead cost. $84,150 Units produced .. 12,600 units Standards per unit of product: Raw materials . 1.1 yards at $15 per yard Direct labor .. 0.8 hours at $9.50 per hour Variable overhead .. $8.00 per direct labor hour Required: Compute the following variances for materials and labor and identify as favorable or unfavorable: a. Direct materials price variance. b. Direct materials quantity variance. c. Direct labor rate variance. d. Direct labor efficiency. variance. Part b The Reedy Company uses a standard costing system. The following data are available for November: Actual direct labor-hours worked . 5,800 hours Standard direct labor rate .. $9 per hour Labor rate variance .. $1,160 favorable