Direct material and variable variance. During September, wonderland LTD material purchased amount of 7,000 kilograms at a price of $8 per kg. Actual costs incurred in the production of 2,700 units are as follows: Direct material $51,000 $8 per kg Direct labour $118,611 $19.10per hour Standard for one units of production is: quantity Price Direct material 2.5 kg per units $7 per kg. Direct labour 2.5 per unit $21 per hour Calculate following variance, indicating would each variance is favorable or unfavorable 1. Direct material price variance. 2. Direct material quantity variance. 3. Direct labour efficiency variance 4. Direct labour rate variance