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Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures Direct materials (16 lbs. @ $4 per lb.) Direct labor (4 hrs. @ $14 per hr.) $64 56 During June the company incurred the following actual costs to produce 8,700 units. Direct materials (141,200 lbs. @ $3.80 per lb.) Direct labor (38,000 hrs. @ $14.10 per hr.). $536,560 535,800 (1) Compute the direct materials price and quantity variances. Actual Cost Standard Cost (2) Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable. Actual Cost Standard Cost