Raisen, Inc.s budget included the following overhead costs for the current year assuming operations at 80% of capacity, or 40,000 units:

Total Variable overhead: 240,000 Total fixed overhead: 560,000 Total Overhead: 800,000

Standard cost per unit when operating at this same 80% capacity level is: Direct Materials (5 lbs. @ 4/lb.): 20.00 Direct Labor (2 hrs. @ 8.75/hr): 17.50 Variable overhead (2hrs @ 3/hr): 6.00 Fixed Overhead (2hrs. @ 7/hr): 14.00 Total Cost per unit: 57.50

The actual production achieved in the current year was 60% of capacity, or 30,000 units. The actual costs were: Direct Materials (150,350 lbs.): 616435 Direct Labor (59,800 hrs.): 520,260 Variable Overhead: 192,000 Fixed Overhead: 552,000

Calculate the following variances and indicate whether each is favorable or unfavorable:

Direct Materials: Price variance _____ Quantity Variance

Direct Labor: Rate Variance _____ Efficiency Variance