Check my work Exercise 21-12 Direct materials and direct labor varlances LO P3 Reed Corp, has set the following standard direct materials and direct labor costs per unit for the product It manufactures points 564 00:58:50 Direct materials (16 lbs. $ $ 4 per lo Direct labor (3 hrs. $10 per hr.) 42 Book During June the company incurred the folosing actual costs to produce 8.200 units References S508920 Direct materials (133,400 lbs. $ $3.80 per lb.) Direct labar (29,000 hrs. $14.20 per te.. 2 800 AH-Actual Hours SH = Standard Hours AR-Actual Rate SR - Standard Rate AD-Actual Quantity SQ - Standard Quantity AP - Actual Price SP - Standard Price (1) Compute the direct materiais price and quantity wariancas (indicate the effect of each variance by selecting for favorable, unfavorable, and no varianse) (2) Compute the direct laborate varianca and the direct labar afficiency warianga. Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Complete this question by entering your answers in the tabs below. Required Required Compute the direct materials price and quantity variances. Indicate whether each variance is favorable or unfavorable. Actual Cost Standard Cost Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures points 64 Direct materials (16 lbs. # $4 per lb.) Direct Labor (3 hrs. $14 per hr.) 2 00:58:26 During June the company incurred the following actual costs to produce 8,200 units. cBook S506.920 References Direct materiala (133, 400 lbs. 2 $3.80 per lb.) Direct Labor (29,000 hrs. $14.20 per hr.). 411.800 AH = Actual Hours SH - Standard Hours AR = Actual Rate SR - Standard Rate AQ = Actual Quantity so - 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.) (2) Compute the direct labor rate variance and the direct labor efficiency variance (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Complete this question by entering your answers in the tabs below. Required Required Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable. Standard Cost ol $ 0 $ 0