Provide steps to complete the problem:
During April, Dryden Company's material purchased amounted to 6,500 pounds at a price of $7.40 per pound. Actual costs incurred in the production of 2,000 units were as follows.
Direct Labor: $118,035 ($18.30 per hour)
Direct material: $31,820 ($7.40 per hour)
The standards for one unit of Dryden Company's products are as follows:
Direct Labor Direct material:
Quantity, 3 hours per unit Quantity, 2 pounds per unit
Rate, 18.00 per hour Price, 7.20 per pound
Compute the direct-material price and quantity variances and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.