Reference no: EM132042457

Question - Rusty's Bakery has the following standards for one unit of bread product:

Direct material

Quantity: 7 pounds per unit

Price per pound: $10 per pound

Direct labor

Quantity: 3 hours per unit

Rate per hour: $18 per hour

Actual costs incurred in the production of 2,800 units were as follows:

Direct material: $195,350 ($10.50 per pound)

Direct labor: $392,750 ($17.50 per hour)

All materials purchased were consumed during the period.

Calculate the direct-material price and quantity variances, and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.