Chapter Ch. 10 How do Managers Evaluate Performance Using Cost Variance Analysis? Anne's Arbors has the following budget and actual results for May: Budget Actual Unit production 9,000 9,600 Direct labor hours 11,250 11,550 Materials used, feet 15,750 16,100 Standard labor rate is $12 per hour; standard material price is $4.50 per foot. Actual wages were $140,250; actual material purchases were 17,500 pounds for $77,160. TO-DO: Calculate the following four variances (material price variance, material use variance, direct labor rate variance, direct labor efficiency variance), and indicate if each is favorable or unfavorable. Please show your work Material price variance: Material use variance: Direct labor rate variance: = R e Direct labor efficiency variance