During June , Danby Company’s material purchases amounted to 8. 100 pounds at a price of $8.00 per pound. Actual costs incurred inthe production of 1, 600 units were as follows :Direct labor :`$135, 975 ($18.50 per hour )Direct material :$ 39 , 206 ($8. 80 per pound )The standards for one unit of Danby Company’s product are as follows :Direct Labor :`Direct Material :Quantity , 4 hours per unitRate , $18. 40 per hourQuantity , 3 pounds per unitPrice , $7 . 70 per poundRequired :”Compute the direct- material price and quantity variances , the direct-material purchase price variance , and the direct -labor rate andefficiency variances . ( Indicate the effect of each variance by selecting ” Favorable ” or ” Unfavorable ” . Select ” None ” and enter ” 0 “for no effect ( i.e., zero variance ) . !`Direct- material price variance*Direct-material quantity variance*Direct – material purchase price varianceDirect – labor rate varianceDirect- labor efficiency variance
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