Volmer Company has set the following standards $($for budgeting purposes$)$ for one

unit of product:$$

Direct material

$$ Quantity: $4\mathrm{.}7$ pounds per unit

$$ Price per pound: $$9$ per pound

Direct labor

$$ Quantity: $3$ hours per unit

$$ Rate per hour: $$21$ per hour

$$

$$Actual costs incurred in the production of $2,000$ units were as follows:$$

Direct material: $$89,280($@$$9\mathrm{.}30$ per pound$)$

Direct labor: $$118,900($@$$20\mathrm{.}50$ per hour$)$

$$All materials purchased were consumed during the period.$$

$$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. $(4$ X $2=8$ points$)$