Upstart, Inc The Following Information Pertains to July:
Direct Material Purchased: 42,500

Essay

Upstart, Inc. manufactures a product that has the following standard costs: $\begin{array}{lr}\text { Direct materials: } 40 \text { yards at } \$ 2.70 \text { per yard } & \$ 108 \\\text { Direct labor: } 8 \text { hours at } \$ 18.00 \text { per hour } & \underline{144} \\\text { Total } & \underline{\$ 252}\end{array}$
The following information pertains to July:
Direct material purchased: 42,500 yards at $2.78 per yard, or $118,150
Direct material used: 36,000 yards
Direct labor: 7,500 hours at $18.30 per hour, or $137,250
Actual completed production: 1,050 units
Assume that the company computes variances at the earliest point in time.
Required:
Calculate the direct-material price and quantity variances, and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.