Straightforward calculation of variances; variance diagrams: manufacturer During June, Barry Ltd's material purchases amounted to 6500 kilograms at a price of $12 per kilogram. Actual costs incurred in the production of 2000 units were as follows: Direct labour Direct material $266062.50 $ 51600 ($41.25 per hour) ($12 per kilogram) The standards for one unit of Barry's product are as follows: Direct labour Direct material Quantity: 3 hours per unit Quantity: 2 kilograms per unit Rate: $40.50 per hour Price: $12.25 per kilogram Required: 1. Calculate the direct material price and quantity variances and the direct labour rate and efficiency variances. Indicate whether each variance is favourable or unfavourable