Ch23 Case Study Assignment - Part 1 Variance Analysis Problem Avatar, Inc. has prepared the following standard cost sheet for one unit of the product. Direct materials (5 pounds at $3 per pound) Direct labor (2 hours at $13.00 per hour) $15.00 $26.00 During the month of November, the company manufactures 450 units and incurs the following actual costs. Direct materials purchased and used (2,000 pounds) Direct labor (1,000 hours) $8,000 $12,000 1. Compute the total, price, and quantity variances for materials and labor. Direct Material Variances (AQx AP) (SQ x SP) Total Favorable or Unfavorable Total Direct Material Variance = Direct Material Price Variance (AQx AP) (AQ SP) Total Favorable or Unfavorable = (AQx SP) (SQxSP) Total Favorable or Unfavorable Direct Material Quantity Variance =