1 Reed Corp has set the following standard direct materials and direct labor costs per unit for the product it manufactures 5 Direct materials (16 lbs $3 per lb ) Direct labor (3 hrs $14 per hr ) $48 42 points During June the company incurred the following actual costs to produce 8,200 units eBook Direct materials (133,400 lbs $2 75 per lb ) Direct labor (28,500 hrs $14 10 per hr ) $366,850 401,850 Hint AH Actual Hours SH Standard Hours AR Actual Rate SR Standard Rate Ask Print AQ Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price References (1) Compute the direct materials price and quantity variances (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance ) (2) Compute the direct labor rate variance and the direct labor efficiency variance (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance ) Complete this question by entering your answers in the tabs below Required 1 Required 2 Compute the direct materials price and quantity variances Indicate whether each variance is favorable or unfavorable Actual Cost Standard Cost Required 1 Required 2

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1 Reed Corp  has set the following standard direct materials and direct labor costs per unit for the product it manufactures  5 Direct materials (16 lbs    $3 per lb ) Direct labor (3 hrs    $14 per hr ) $48 42 points During June the company incurred the following actual costs to produce 8,200 units  eBook Direct materials (133,400 lbs    $2 75 per lb ) Direct labor (28,500 hrs    $14 10 per hr )  $366,850 401,850 Hint AH   Actual Hours SH   Standard Hours AR   Actual Rate SR   Standard Rate Ask Print AQ   Actual Quantity SQ   Standard Quantity AP   Actual Price SP   Standard Price References (1) Compute the direct materials price and quantity variances  (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance ) (2) Compute the direct labor rate variance and the direct labor efficiency variance  (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance ) Complete this question by entering your answers in the tabs below  Required 1 Required 2 Compute the direct materials price and quantity variances  Indicate whether each variance is favorable or unfavorable  Actual Cost Standard Cost Required 1 Required 2

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1 Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. 5 Direct materials (16

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