Problem 1: Etsy produces books. The standard cost of materials and labor are as follows: Standard Quantity or Hours Standard Price or Rate Direct materials Direct labor 12 pounds $8.25 per 4.0 hours $9.65 per hour During the year, the company posted the following: Actual output Raw materials purchased and used in production Actual cost of materials Raw direct labor used in production Actual direct labor rate 3,200 units 37,500 pounds $8.35 per pound 12,520 Hours $9.80 per hour Required: 25. Compute the materials quantity variance and indicate it as favorable or unfavorable 26. Compute the materials price variance and indicate it as favorable or unfavorable 27. Compute the materials spending variance and indicate it as favorable or unfavorable. 28. Compute the labor efficiency variance and indicate it as favorable or unfavorable 29. Compute the labor rate variance and indicate it as favorable or unfavorable 30. Compute the labor spending variance and indicate it as favorable or unfavorable. 16