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Exercise 8-15 (Static) Direct materials and direct labor variances LO P3 The following information relates to production activities of Mercer Manufacturing for the year. Actual direct materials used Actual direct labor used Actual units produced Standard quantity and price per unit for direct materials Standard quantity and rate per unit for direct labor 16,000 pounds at $4.95 per pound 16,635 hours at $19 per hour 30,000 0.5 pound at $4.00 per pound 0.5 hour at $20 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no varia Actual Cost Standard Cost Required 1 Required 2 > t of each variance by selecting favorable, unfavorable, or no variance.) Standard Cost Efficiency variance Fequired 1 Price variance Quantity variance Rate variance Total direct materials variance Total variable overhead cost variance Required Variable overhead efficiency variance Variable overhead spending variance Volume variance Favorable Required 2 > No variance Unfavorable Compute the dire Actual Cost AQ SQ the direct materials Actual Cost elin AP SP