Timber Enterprises purchased 63,600 pounds (cost = $477,000) of direct material to be used in the manufacture of the company's only product. According to the production specifications, each completed unit requires seven pounds of direct material at a standard cost of $7 per pound. Direct materials consumed by the end of the period totaled 62,400 pounds in the manufacture of 17,200 finished units. An examination of Timbers payroll records revealed that the company worked 49,000 labor hours (cost = $637,000) during the period, and specifications called for each completed unit requiring 2.8 hours of labor at a standard cost of $13.2 per hour. Use the information to compute the following variances: Required: Compute the following variances.

Timber Enterprises purchased 63,600 pounds (cost = $477,000) of direct material to be used in the manufacture of the company's only product. According to the production specifications, each completed unit requires seven pounds of direct material at a standard cost of $7 per pound. Direct materials consumed by the end of the period totaled 62,400 pounds in the manufacture of 17,200 finished units. An examination of Timber's payroll records revealed that the company worked 49,000 labor hours (cost = $637,000) during the period, and specifications called for each completed unit requiring 2.8 hours of labor at a standard cost of $13.2 per hour. Use the information to compute the following variances: Required: Compute the following variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance).) Direct-material price variance Direct-material quantity variance Direct-labor rate variance Direct-labor efficiency variance