12. Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds @ $5 per pound) $ 70 Direct labor (4 hours @ $14 per hour) 56 During May the company incurred the following actual costs to produce 8,400 units. Direct materials (120,700 pounds @ $4.80 per pound) $ 579,360 Direct labor (38,400 hours @ $14.10 per hour) 541,440 AR = Actual Rate SR = Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance.

Camila Company has set the following standard cost per unit for direct materials and direct labor.

Direct materials (15 pounds @ $4 per pound)	$ 60
Direct labor (3 hours @ $16 per hour)	48

During June the company incurred the following actual costs to produce 8,600 units.

Direct materials (131,100 pounds @ $3.80 per pound)	$ 498,180
Direct labor (30,400 hours @ $16.15 per hour)	490,960

AR = Actual Rate SR = Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance.

The following information relates to production activities of Mercer Manufacturing for the year.

Actual direct materials used	16,600 pounds at $4.35 per pound
Actual direct labor used	17,235 hours at $25 per hour
Actual units produced	31,200
Standard quantity and price per unit for direct materials	0.50 pound at $4.30 per pound
Standard quantity and rate per unit for direct labor	0.50 hour at $26 per hour

AR = Actual Rate SR = Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price

(1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate and efficiency variances.