Direct materials (14 lbs. @ $5 per lb.) Direct labor (4 hrs. @ $14 per hr.) $70 56 During May the company incurred the following actual costs to produce 8,200 units. Direct materials (117,500 lbs. @ $4.80 per lb.) Direct labor (37,400 hrs. @ $14.10 per hr.). $564,000 527,340 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.) (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. Round "Rate per hour" answers to 2 decimal places.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances. Indicate whether each variance is favorable or unfavorable. Actual Cost AQ X X AP 0 Direct materials price variance Direct materials quantity variance Total direct materials variance $ 0 AQ X SP X $ 0 0 $ 0 Standard Cost SQ X SP X < Required 1 Required 2 > Direct materials (14 lbs. @ $5 per lb.) $70 Direct labor (4 hrs. @ $14 per hr.) 56 During May the company incurred the following actual costs to produce 8,200 units. Direct materials (117,500 lbs. @ $4.80 per lb.) Direct labor (37,400 hrs. @ $14.10 per hr.). $564,000 527,340 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.) (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. Round "Rate per hour" answers to 2 decimal places.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable. Actual Cost AH AR X Direct labor rate variance Direct labor efficiency variance Total direct labor variance $ 0 AH X SR x $ 0 0 $ 0 Standard Cost SH SR X < Required 1 Required 2 >