During May the company incurred the following actual costs to produce $8,400$ units.Exercise $21-11($Algo$)$ Direct materials and direct labor variances LO P$3$

Lucia Company has set the following standard cost per unit for direct materials and direct labor.

Direct materials $(16$ pounds a $$4$ per pound$)$

$$64$

$60$

Direct labor $(4$ hours a $$15$ per hour$)$

During May the company incurred the following actual costs to produce $8,400$ units.

Direct materials pounds a $$3\mathrm{.}80$ per pound$)$

Direct labor hours a $$15\mathrm{.}10$ per hour$)$

$519,460$

$552,660$

$AR=$ Actual Rate

$SR=$ Standard Rate

$AQ=$ Actual Quantity

$SQ=$ Standard Quantity

AP $=$ Actual Price

$SP=$ Standard Price

$AH=$ Actual Hours

$SH=$ Standard Hours

$(1)$ Compute the direct materials price and quantity variances.

$(2)$ Compute the direct labor rate variance and the direct labor efficiency variance.

Complete this question by entering your answers in the tabs below.

Required $1$

Compute the direct materials price and quantity variances.

Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.

Direct materials pounds & $$3\mathrm{.}80$ per pound$)$

$519,460$

$552,660$

Direct labor hours @ $$15\mathrm{.}10$ per hour$)$

$552,660$

AR $=$ Actual Rate

$SR=$ Standard Rate

$AQ=$ Actual Quantity

$SQ=$ Standard Quantity

$AP=$ Actual Price

$SP=$ Standard Price

$AH=$ Actual Hours

$SH=$ Standard Hours

$(1)$ Compute the direct materials price and quantity variances.

$(2)$ Compute the direct labor rate variance and the direct labor efficiency variance.

Complete this question by entering your answers in the tabs below.

Required $1$

Compute the direct materials price and quantity variances.

Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.