The favorable favorable unfavorable direct materials price variance combined with the unfavorable favorable unfavorable direct materials quantity variance suggests that managers may have used lower-quality higher-quality lower-quality materials. The net effect is unfavorable unfavorable favorable . The unfavorable favorable unfavorable direct labor rate variance combined with the favorable favorable unfavorable direct labor efficiency variance suggests that managers may have used higher-paid higher-paid lower-paid workers who performed more efficiently. The net effect is favorable favorable unfavorable .