Question: also how to indicate whether it is favourable or unfavourable? Dewan Company has set the following standards for one unit of product: Direct material Quantity:

also how to indicate whether it is favourable or unfavourable?

Dewan Company has set the following standards for one unit of product: Direct material Quantity: 6.2 pounds per unit Price per pound: Rs 11 per pound Direct labor Quantity: 6 hours per unit Rate per hour: Rs 23 per hour Actual costs Incurred in the production of 2,800 units were as follows: Direct material: Rs 194,350 (Rs 11.50 per pound) Direct labor: Rs 393,750 (Rs 22.50 per hour) 393 750 2800 All materials purchased were consumed during the period. Required: a) Calculate the direct-material price and quantity variances and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable

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