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[The following information applies to the questions displayed below.] A manufactured product has the following information for June.

	Standard	Actual
Direct materials	(6 lbs. @ $8 per lb.)		52,800	lbs. @ $8.20 per lb.
Direct labor	(3 hrs. @ $16 per hr.)		25,800	hrs. @ $16.50 per hr.
Overhead	(3 hrs. @ $12 per hr.)	$	319,100
Units manufactured			8,700

Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate

Actual Cost								Standard Cost