Sage Corp. uses a standard cost system to account for the costs of its one product Standards are 2.7 pounds of materials at $13 per pound and 40 hours of labor at a standard wage rate of $10. During July, Sage Corp. produced 3,330 units. Materials purchased and used totaled 10,080 pounds at a total cost of $143,420. Payroll totaled $133,560 for 13,150 hours worked a. Calculate the direct labor rate variance (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable". "Unfavorable" or "None" for no effect (.e., zero variance).) Rate Variance b. Calculate the direct labor efficiency variance (Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (.e., zero variance).) Efficiency Variance