·Standard Costing and Variance Analysis: Company F sets standard costs for direct materials at $40 per unit and direct labor at $30 per unit. Actual costs incurred are $42 per unit for direct materials and $28 per unit for direct labor.

• Requirement 1: Calculate the direct materials price variance and quantity variance.
• Requirement 2: Compute the direct labor rate variance and efficiency variance.
• Requirement 3: Analyze the variances and identify potential causes.