2. Compute the rate and efficiency variances for direct labor for the month of June . Please state if variances are favourable or unfavourable . ( 4 Marks )

U I DIRECT COSTS VARIANCE ANALYSIS 3 Computer Carriages manufactures mobile plastic computer carts. At the start of June, the following budgeted unit amounts (based on a standard cost system) related to its manufacture of its deluxe cart: Direct Material per cart: 20 square meters (m2) Saving your work for grading: $19 per square meter Remember to press the yellow button to save your work . A link to your spreadsheet will be placed in the clipboard. Direct Labor per cart: Click the Moodle tab and follow the instructions to paste your link for grading . O 2.5 hours If you make changes to your spreadsheet, click the yellow button to save. $28 per hour There is no need to paste another link to your spreadsheet. Budgeted production for June was 800 carts. There was no inventory of direct material as of June 1. Work-in-Process inventories were insignificant throughout the month of June. Actual results for June 2017 were as follows: Direct Materials used: (14,700 m2) Direct Materials purchased (17,000 m2) at $357,000 Direct Labor (2500 hours @ $27 per hour) at $67,500 Actual production for June of 2017 was 790 carts. Assume that a constant purchase price for the direct materials existed in June of 2017, and that all variances are identified as soon as possible. *There are 2 parts to this question below. Required: 1. Compute the rate and efficiency variances for direct materials for the month of June. Please state if variances are favourable or unfavourable