Question 2 Kibodeaux Corporation makes a product with the following standard costs: Inputs Standard Quantity Standard Price or Standard Cost Direct materials. Direct labor..... Variable overhead.. or Hours 9.8 liters 0.1 hours 0.1 hours Rate $5.00 per liter $22.00 per hour $3.00 per hour Per Unit $49.00 $2.20 $0.30 The company budgeted for production of 3,300 units in June, but the actual production was 3,400 units. The company used 33,240 liters of direct material and 320 direct labor hours to produce this output. The company purchased 35,900 liters of direct material at $4.90 per liter. The actual direct labor rate was $22.70 per hour and the actual variable overhead rate was $2.70 per hour. The company applies variable overhead based on direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. Calculate 1. Material Quantity Variance 2. Material Price Variance 3. Labor Efficiency Variance 4. Labor Rate Variance Identify whether each of these variances are favorable or unfavorable.