Requirement 3. Compute the price variance for direct materials and for direct labour. Begin by determining the formula for the price variance, then compute the price variances for direct materials (DM) and direct labour (DL). (Enter the results as positive numbers. Label each variance as favourable (F) or unfavourable (U).) Actual price per input unit Standard price per input unit ) x Actual quantity of input Price variance DM 9.50 9.30 ) x 210,000 = 42,000 F DL ( 15.10 14.50 ) x 41,500 = 24,900 U Static Budget Actual Results (21,500 PCs) (19,500 PCs) $ 7,507,500 $ 8,707,500 1,852,500 Sales (19,500 PCs X $385 ) (21,500 PCs x $405 ) Variable manufacturing expenses: Direct materials (195,000 parts x $9.50 ) (210,000 parts x $9.30) Direct labour (39,000 hrs. x $14.50 ) (41,500 hrs. x $15.10 ) Variable overhead (195,000 parts x $ 4.10 ) (210,000 parts x $ 4.20 ) 1,953,000 565,500 626,650 799,500 882,000 Fixed manufacturing expenses: Fixed overhead 877,500 907,500 Total cost of goods sold 4,095,000 4,369,150 $ Gross profit 3,412,500 $ 4,338,350