Upstart, Inc. manufactures a product that has the following standard costs: Direct materials: 40 yards at $2.70 per yard $108 144 $252 Direct labor: 8 hours at $18.00 per hour Total The following information pertains to July: Direct material purchased: 42,500 yards at $2.78 per yard, or $118,150 Direct material used: 36,000 yards Direct labor: 7,500 hours at $18.30 per hour, or $137,250 Actual completed production: 1,050 units Assume that the company computes variances at the earliest point in time. Required: Calculate the direct-material price and quantity variances, and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. Given the reason why the direct-material price and quantity variances, and the direct-labor rate and efficiency variances is favorable or unfavorable.