Learning Objective 7 Check Figure Problem 27.5A Objective: To calculate variances in a standard cost accounting system Stringly Corporation produces 1.000 units of its product at the following standard costs: Direct materials: 2 pounds per unit at $2.00 per pound Direct labor. 5 hours per unit at $6.00 per hour Factory overhead: 50% of direct labor costs Actual costs for the current period's production of 1,000 units are as follows: Direct materials 2.200 pounds at $2 10 per pound Direct labor: 4,900 hours at $6.20 per hour Factory overhead $15.300 Directions: Calculate each of the following variances and label each as favorable or unfavorable: (a) direct materials. (b) direct materials quantity, (c) direct materials price, (d) direct labor. (e) direct labor time, (f) direct labor rate, (g) factory overhead, and (h) total