So, let's try one exercise. You have been provided the following information for each unit of your product: Standard Quantity or Hours allowed Standard Price or Labor Rate charged 4.3 ounces $6.00 per ounce Direct labor 0.7 hours $21.00 per hour Direct materials The company reported the following results concerning this product in October. Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials Actual direct labor rate 3,500 units 14,710 ounces 2,270 hours 16,700 ounces $5.80 per ounce $21.90 per hour The materials price variance is recognized when materials are purchased whereas material quantity variance is calculated based on materials actually used. a. Compute materials quantity variance. Is it favorable or unfavorable? b. Compute materials price variance. Is it favorable or unfavorable? c. Compute labor efficiency variance. Is it favorable or unfavorable? d. Compute labor rate variance. Is it favorable or unfavorable