2

Lucio Company has set the following standerd cost per unit for direct materials and direct labor. Direct materials (16 poundn it $3 per pound) Direct labor (4 bearn e. $16 per hour) is 8 During May the company incurred the following actual costs to produce 8,900 units. Direet Labor (40,500 hours i $16.10 per hour) 400,520652,050 AR= Actual Rate SR= Standard Rate AC = Actual Quantity SO = 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. Complete this question by entering your answers in the tabs below. Compute the direct materials price and quanty varinces. Noter Indicate the effect of each variance by selecting favorable, unavorable, or na variance. Compute the direct labor rate variance and the direct labor efficiency variance. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no varlance. Round "Rate per hour" answers to 2 decimal places