Camila Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds @ $5 per pound) Direct labor (3 hours @ $316 per hour) $ 70 48 During June the company incurred the following actual costs to produce 8,600 units. Direct materials (122,500 pounds @ $4.75 per pound) Direct labor (30,500 hours @ $16.20 per hour) $ 581,875 494,100 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. Required 1 Required 2 Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Cost AQ X AP 122,500 X $ 4.75 $ 581,875 Price variance Quantity variance Total direct materials variance 30,625 AQ 122,500 SP X $ 5.00 $ 612,500 $ 30,625 Favorable $ 0 Unfavorable Favorable < Required 1 Required 2 > Standard Cost SQ X SP X Required 1 Required 2 Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting favorable, unfavorable, variance. Round "Rate per hour" answers to 2 decimal places.) Actual Cost AQ AR 30,500 $16.20 $ 494,100 Rate variance Efficiency variance Total direct labor variance $6,100 AQ 30,500 SR $ 16.00 $488,000 $ 6,100 Unfavorable 0 Unfavorable Unfavorable $ 0 Standard Cost SQ SR < Required 1 Required 2