Please answer the following question.

Please provide any formulas or explanation needed.

7. The caf needs to know what their direct labor price and efficiency variance is. Their standard direct labor time per item is 0.30 hour, at a price of $13 per hour. The actual results for the production of 2,500 items were 0.25 hour per item, at a price of $10 per hour. (6 points) a. Calculate the direct labor price variance and indicate favorable or unfavorable b. Calculate the direct labor efficiency variance and indicate favorable or unfavorable