RedSea Company produces a single product. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The standard costs for one unit of product are as follows:During June, 2.000 units were produced. The costs associated with Junes operations were as follows:Required:

(a) Compute the direct materials variances.

(b) Compute the direct labor variances.

(c) Compute the variable manufacturing overhead variances.

(d) If variable manufacturing overhead is applied to production on the basis of direct labor- hours and the direct labor efficiency variance is unfavorable, will the variable overhead efficiency variance be favorable or unfavorable, or could it be either? Explain.

\begin{tabular}{|l|l|} \hline Direct material: 6 ounces at $0.50 per ounce & $3.00 \\ \hline Direct labor: 0.6 hours at $30.00 per hour & $18.00 \\ \hline Variable manufacturing overhead: 0/6 hours at $10.00 per hour & $6.00 \\ \hline Total standard variable cost per unit & $27.00 \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline Materials purchased: 18,000 ounces at $0.60 per ounce & $10,800 \\ \hline Material used in production: 14,000 ounces & - \\ \hline Direct labor: 1,100 hours at $30.50 per hour & $33,550 \\ \hline Variable manufacturing overhead costs incurred & $12,980 \\ \hline \end{tabular}