The following standard costs were developed for Product A at Larry Corporation. Budgeted production for the year is 10,000 units, and overhead is applied on the basis of direct labor hours.

The master budget is as follows:

Direct materials(40,000 feet $14.00 per foot)$560,000

Direct labor (DL)(60,000 DL hours $10.00 per hour)$600,000

Variable overhead(60,000 DL hours $8.00 per hour)$480,000

Fixed overhead$720,000

Total budgeted cost$2,360,000

The following actual information is available for the production of Product A for the period:

Units produced:9,500

Materials purchased:39,500 feet @ $13.80 per foot

Materials used:39,500 feet

Direct labor:56,000 hours, costing $560,000

Variable overhead incurred:$470,000

Fixed overhead incurred:$720,000

Required:

1. Calculate the dollar amount and label the following variances as "favorable" or "unfavorable":
2. Direct materials price variance (4 points)
3. Direct materials efficiency variance (4 points)
4. Direct labor efficiency variance (4 points)