During June, Danby Company’s material purchases amounted to 6,000 pounds at a price of $7.30 per pound. Actual costs incurred in the production of 2,000 units were as follows:

Direct labor: ..........$116,745 ($18.10 per hour)

Direct material: ........$30,660 ($7.30 per pound)

The standards for one unit of Danby Company’s product are as follows:

Direct labor: .............Direct material:

Quantity, 3 hours per unit .......Quantity, 2 pounds per unit

Rate, $18 per hour ..........Price, $7 per pound

Required:

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