Price and Efficiency Variances Case Study The Red Manufacturing Company uses the following material and labor standards for its product ZYA: Per Unit Direct Materials, 2 lbs at $10.00 per lb $20.00 Direct Labor, 5 hours at $25.00 per hour $125.00 Actual data for the month indicated the following: 10,500 units of production were budgeted. 10,000 units of the product were produced. 22,000 pounds of direct materials were purchased for a total cost of $242,000. 19,000 pounds of direct materials were used. 49,000 hours of direct labor hours were worked at $26.00 per hour for a total labor cost of $1,274,000. For each of the below, calculate the amount of the variance and if it is favorable or unfavorable. a. What is the sales volume variance for the direct costs? b. What is the materials efficiency variance for the period? c. What was the actual cost per pound of the material purchased? d. What is the materials price variance for the period? e. What is the labor price and efficiency variance for the period