1. Variances: Illustrate all variances for the direct labor time and the materials price.
2. Significance of Variances: Evaluate the significance of the variances in terms of the potential to impact future budgeting decisions and planning.

Variances for Collar Sales
			Variance	Favorable/ Unfavorable
Direct Labor Time Variance
(Actual Hours - Standard Hours) x Standard Rate			$ 320.00	Unfavorable
Direct Labor Rate Variance
(Actual Rate - Standard Rate) x Actual Hours			$ 90.00	Unfavorable
Direct Materials Quantity/Efficiency Variance
(Actual Quantity - Standard Quantity) x Standard Price			$ 546.00	Unfavorable
Direct Materials Price Variance
(Actual Price - Standard Price) x Actual Quantity			$ 594.00	Unfavorable