RECOMMENDED!!ACCT 2102-Lionaire, Inc. has developed the following standard cost

  

Lionaire, Inc. has developed the following standard cost data based on 60,000 direct labor hours, which is 75% of capacity.Per UnitDirect materials (6 lbs. @ $2.00/lb.)$12.00Direct labor (1 hrs. @ $8.00/hr.)8.00During the last period, the company operated at 80% of capacity and produced 128,000 units. Actual costs were:Direct materials (760,000 lbs.)$1,558,000Direct labor (126,000 hrs.)1,014,300Determine the direct materials price and quantity variances and the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.Direct materials: Price variance________ Quantity variance________Direct labor: Rate variance________ Efficiency variance________

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