Utease Corporation has several production plants nationwide. A newly opened plant in Dubuque produces and sells one product. The plant is treated, for responsibility accounting purposes, as a profit center. The unit standard costs for a production unit, with overhead applied based on direct labor hours, are as follows.

Manufacturing costs (per unit based on expected activity of 16,000 units or 19,200 direct labor hours):

Required information [The following information applies to the questions displayed below.] Utease Corporation has several production plants nationwide. A newly opened plant in Dubuque produces and sells one product. The plant is treated, for responsibility accounting purposes, as a profit center. The unit standard costs for a production unit, with overhead applied based on direct labor hours, are as follows. Manufacturing costs (per unit based on expected activity of 16,000 units or 19,200 direct labor hours): $ Direct materials (1.9 pounds at $10) Direct labor (1.2 hours at $50) Variable overhead (1.2 hours at $20) Fixed overhead (1.2 hours at $30) Standard cost per unit Budgeted selling and administrative costs: Variable Fixed 19.00 60.00 24.00 36.00 139.00 $ $ 4 per unit $1,500,000 Expected sales activity: 12,000 units at $350 per unit Desired ending inventories: 12% of sales Assume this is the first year of operations for the Dubuque plant. During the year, the company had the following activity. Units produced Units sold Unit selling price Direct labor hours worked Direct labor costs Direct materials purchased Direct materials costs Direct materials used Actual fixed overhead Actual variable overhead Actual selling and administrative costs 15,000 13,500 $ 345 17,500 $ 892,500 32,500 pounds $ 325,000 32,500 pounds $1,000,000 $ 284,000 $1,648,000 In addition, all over- or underapplied overhead and all product cost variances are adjusted to cost of goods sold. c. Find the direct labor variances. Indicate if they are favorable or unfavorable. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting Favorable, Unfavorable, and "None" for no effect.) Direct Labor Variances Labor efficiency variance Labor rate variance d. Find the direct materials variances (materials price variance and quantity variance). (Indicate the effect of each variance by selecting Favorable, Unfavorable, and "None" for no effect (i.e., zero variance).) Direct Material Variances Material quantity variance Material price variance