Use the following information for the Exercises below.

[The following information applies to the questions displayed below.] A manufactured product has the following information for June.

	Standard	Actual
Direct materials	(6 lbs. @ $8 per lb.)		46,100	lbs. @ $8.10 per lb.
Direct labor	(3 hrs. @ $16 per hr.)		22,400	hrs. @ $16.50 per hr.
Overhead	(3 hrs. @ $13 per hr.)	$	303,100
Units manufactured			7,600

Exercise 21-10 Direct labor variances LO P2

Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate