Camila 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 (3 hours @ $14 per hour)	42

During June the company incurred the following actual costs to produce 8,900 units.

Direct materials (127,300 pounds @ $4.75 per pound)	$ 604,675
Direct labor (31,700 hours @ $14.20 per hour)	450,140

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. Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)

Actual Cost								Standard Cost

Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to 2 decimal places.)

Actual Cost								Standard Cost