Check my w Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures Direct materials (15 lbs. 3 per 1b.) Direct labor (3 hrs. $14 per hr.) $45 42 During June the company incurred the following actual costs to produce 8,200 units Direct materials (125,780 lbs. @ $2.80 per 1b.) Direct labor (27,800 hrs. $14.15 per hr.). $351,960 393,370 AH = Actual Hours SH = Standard Hours 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. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.)