Camila Company has set the following standard cost per unit for direct materials and direct labor. Standard costs: Direct materials (10 pounds @ $3.00 per pound) Direct labor (2 hours @ $12.00 per hour) Standard Standard Standard Quantity Price Cost 10 $3.00 $30 2 $12.00 $24 During June the company incurred the following Actual Units 9,000 actual costs to produce 9,000 units. Actual Actual Actual Actual costs: Quantity Price Cost Direct materials (92,000 pounds @ $2.95 per pound) Direct labor (18,800 hours @ $12.05 per hour) 92,000 $2.95 $271,400 18,800 $12.05 226,540 AR Actual Rate AQ Actual Quantity AP Actual Price: SR Standard Rate SQ Standard Quantity SP Standard Price Required: (1) Compute the direct materials price and quantity variances. Actual Cost AQ 92,000 x x AP $2.95 $271,400 Variance= Standard Cost AQ x SP sa x 92,000 x $3.00 x $3.00 $276,000 Variance Price variance Quantity variance Total direct materials variance (2) Compute the direct labor rate variance and the direct labor efficiency variance. Favorable Unfavorable Unfavorable Actual Cost Variance Variance Direct labor rate variance Unfavorable Direct labor efficiency variance Unfavorable Total direct labor variance Unfavorable 5 Standard Cost