Reference no: EM132837432

Question - ABS Company has set the following standards for one unit of product:

Direct material Quantity: 6.2 pounds per unit

Price per pound: $11 per pound

Direct labor Quantity: 6 hours per unit

Rate per hour: $23 per hour

Actual costs incurred in the production of 2,800 units were as follows: Direct material: $194,350 ($11.50 per pound).

Direct labor: $393,750 ($22.50 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.