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During June the company incurred the following actual costs to produce 8,200 units. Direct materials (116,900 lbs. @ $3.75 per lb.) $ 438,375 Direct labor

During June the company incurred the following actual costs to produce 8,200 units.

Direct materials (116,900 lbs. @ $3.75 per lb.) $ 438,375
Direct labor (20,300 hrs. @ $16.15 per hr.). 327,845

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.)

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