"QUESTION:The following direct materials and direct labor data pertain to the operations of LaurelCompany for the month of August.CostsActual labor rate $15 per hourActual materials price $140 per tonStandard labor rate $14.50 per hourStandard materials price $142 per tonQuantitiesActual hours incurred and used 3,800 hoursActual quantity of materials purchased and used 1,500 tonsStandard hours used 3,850 hoursStandard quantity of materials used 1,490 tons(a) Compute the total, price, and quantity variances for materials and labor.$Favorable, Unfavorable Neither favorable norunfavorableTotal materials variance $Favorable, Unfavorable Neither favorable norunfavorableMaterials price variance $Favorable, Unfavorable Neither favorable norunfavorableMaterials quantity variance $Favorable, Unfavorable Neither favorable norunfavorableTotal labor variance $Favorable, Unfavorable Neither favorable norunfavorableLabor price variance $Favorable, Unfavorable Neither favorable norunfavorableLabor quantity varianceANSWER:(1) Total Materials variance = (Actual Quantity * Actual Price) - (Standard Quantity * Standard Price) = (1500 * $140) - (1490* $142) = $1580 Favorable(2) Material Price variance = Actual Quantity * (Standard Price - Actual Price)= 1500 * ($142 - $140)= $3000 Favorable(3) Material Quantity variance = Standard Price * (Actual Quantity - Standard Quantity) = $142 * (1500 - 1490) = $1420 Unfavorable(4) Total Labor variance = (Actual Hrs * Actual Rate) - (Standard Hrs * Standard Rate)= (3800 * $15) - (3850* $14.5)= $1175 Unfavorable(5) Labor Rate variance = Actual Hrs * (Standard Rate - Actual Rate) = 3800 * ($14.5 - $15) = $1900 Unfavorable(6) Labor Quantity variance = Standard Rate * (Actual Hrs - Standard Hrs) = $14.5 * (3800 - 3850) = $725 Favorable "