21 (4 points for each variance16 points total). Emerald Marine Stores Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. Emerald uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows:

Direct materials: 4 pounds per unit; $6 per pound

Direct labor: 2 hours per unit; $17 per hour

During the first quarter, Emerald produced 4,000 units of this product. Actual direct materials used were 3.8 pounds per unit (15,200 pounds total) at a cost of $4.25 per pound for a total materials cost of $64,600 and direct labor used was 8,400 hours (2.1 hours per unit) at a cost of $16.50 per hour for a total labor cost of $138,600.

Compute the following (and indicate whether they would be Favorable or Unfavorable):

Materials Price Variance

Materials Quantity Variance

Labor Rate Variance

Labor Efficiency Variance