Seashells & Sands, Inc. manufactures decorative glass seashells. In 2022, the company estimated the following standard costs for one of their major products, the Heart of the Ocean Shell. Monthly production budget was 15,000 seashells. Budgeted Quantity Budgeted Price Direct Materials 0.50 Pounds per Seashell $20 per Pound Direct Labor 1 Hour per Seashell $14 per Hour During June, the company produced and sold 22,000 seashells using 13,200 pounds of direct materials at an average cost per pound of $22 and 16,500 direct manufacturing labor-hours at an average wage of $16 per hour.

Required: Perform a Level 3 Variance Analysis by computing the following: a. direct materials price & efficiency variances for the month. b. direct manufacturing labor price & efficiency variances for the month.

NOTE: The following figures were obtained from the Level 2 analysis: Flexible Budget Variance Sales-Volume Variance

Direct Materials ($70,400) Unfavorable ($70,000) Unfavorable Direct Manufacturing Labor $44,000 Favorable ($98,000) Unfavorable