The following standard costs per unit have been established by Guava.:

Material (4 kilograms at $2 per kilogram) $ 8.00

Direct labor (6 hours at $12 per hour) 72.00

During the month, Fear produced 2,100 units, which was 200 more units than planned.

They used 5,400 kilograms and 3,050 hours to do so.

Total actual materials spending was $7,460, while total actual labor spending was $28,675.

Choose EITHER materials OR labor, and compute the following variances:

Spending-Efficiency-Activity

Be sure to denote each variance as favorable or unfavorable.