Standard Costs and Variances Gala Enterprises reports the following information regarding the production on one of its products for the month. Requirement 1: Compute the direct labor cost variance and identify as either F for favorable or U for unfavorable. Cost variance = , F/U Requirement 2: Compute the direct labor rate variance and identify as either F for favorable or U for unfavorable. Rate variance = , F/U Requirement 3: Compute the direct labor efficiency variance and identify as either F for favorable or U for unfavorable. Efficiency variance = , F/U