Use the information provided by Mr. Suncat, to answer your question.

Actual price paid for ingredients	$50.00
Standard price for ingredients	$49.75
Actual quantity purchased and used	3.85 pounds
Standard quantity used	4 pounds
Actual labor rate per hour	$52.50
Standard labor rate per hour	$50.00
Actual hours for cakes produced	7 hours
Standard hours for cakes produced	6.9 hours

below the direct material price variance, direct material quantity variance, and the total direct materials variance are as follows:

Actual Cost						Standard Cost
AQ	3.85		AQ	3.85		SQ	4
AR	50		SR	49.75		SR	49.75
	192.5			191.54			199
		0.9625			7.46

Direct material price variance	0.96	Unfavorable
Direct material quantity variance	7.46	Favorable
Material cost variance	6.50	Favorable

below the direct labor rate variance, direct labor time variance, and the total direct labor variance are as follows:

Actual Cost						Standard Cost
AH	7		AH	7		SH	6.9
AR	52.5		SR	50		SR	50
	367.5			350			345
		17.5			5

Direct labor variance	17.5	Unfavorable
Direct labor efficiency variance	5	Unfavorable
Total direct labor variance	22.5	Unfavorable

1. After analyzing these variances, should Mr. Suncat be concerned? Why or why not? REMEMBER!!! Give an explanation that includes detailed information and calculations to support this answer!