The Belk Company has developed the following standard cost data. The fixed overhead rate is based on a denominator volume of 60,000 direct labor hours.

	Per Unit
Direct materials (3 lbs. @ $2.00/lb.) Direct labor (0.5 hrs. @ $8.00/hr.)	$ 6.00 4.00

During a recent period, the company produced 128,000 units. It incurred the following manufacturing costs:

Direct materials Direct labor

Purchased 390,000 lbs. @ $2.05/lb.; used 380,000 lbs. Used 63,000 hours at a cost of $507,150

Determine the following variances. Indicate whether each is favorable or unfavorable.

Materials price Variance

Materials inventory Variance

Materials usage variance.

Determine the direct labor rate and efficiency variances.