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 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: The following actual information is available for the production of Product A for the period: Draduact A nrodu untion data Required: 1. Calculate the dollar amount and label the following variances as "favorable" or "unfavorable": a. Direct materials price variance (4 points) b. Direct materials quantity variance (4 points) c. Direct labor efficiency variance (4 points)