standard cost data based on 60,000 direct labor hours 2. Handmade, Inc. has developed the following which is 75% of capacity. Direct materials (6 lbs.@ $2.00/lb.) Direct labor (1 hrs. @ $8.00/hr.) Per Unit $12.00 8.00 During the last period, the company operated at 80% of capacity and produced 128,000 units. Actual costs were: Direct materials (760,000 lbs.) Direct labor (126,000 hrs.) $1,558,000 1,014,300 Required: Determine the total direct materials and total direct labor variances, direct materials price and quantity variances and the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable Total Direct Materials variance: Direct materials price variance Direct materials quantity variance Total Direct Labor Variance: Direct labor rate variance Direct labor efficiency variance