The following information describes a company's direct labor usage in a recent period. Actual direct labor hours used (AH) Actual direct labor rate per hour (AR) 70,000 $ 15 $ 14 72,000 Standard direct labor hours for units produced (SH) AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate Compute the direct labor rate and efficiency variances for the period and classify each as favorable or unfavorable. Actual Cost AHI X Standard Cost X AR AH X SR SH SR $ 0 $ 0 Direct labor rate variance S o Direct labor efficiency variance Total direct labor variance Unfavorable 0 Favorable Unfavorable