The following information describes actual production activities of the Cheers Corp.: Raw materials used 13,000 lbs....

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The following information describes actual production activities of the Cheers Corp.: Raw materials used 13,000 lbs. at $2.50 per Ib. 3,500 hours for a total of Factory payroll $42,000 15,000 units were completed during the year Budgeted standards for each unit produced: 1 lb. of raw material at $2.60 per Ib. 15 minutes (.25) of direct labor at $12.50 per hour Compute the direct materials price and quantity and the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. The following information describes actual production activities of the Cheers Corp.: Raw materials used 13,000 lbs. at $2.50 per Ib. 3,500 hours for a total of Factory payroll $42,000 15,000 units were completed during the year Budgeted standards for each unit produced: 1 lb. of raw material at $2.60 per Ib. 15 minutes (.25) of direct labor at $12.50 per hour Compute the direct materials price and quantity and the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.

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