es Exercise 23-15 (Algo) Direct materials and direct labor variances LO P3 The following information relates to production activities of Mercer Manufacturing for the year. Actual direct materials used Actual direct labor used Actual units produced Standard quantity and price per unit for direct materials Standard quantity and rate per unit for direct labor 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. (2) Compute the direct labor rate and efficiency variances. 17,000 pounds at $4.55 per pound 17,635 hours at $29 per hour 32,000 0.50 pound at $4.50 per pound 0.50 hour at $30 per hour Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Actual Cost AQ X AP Price variance Quantity variance Total direct materials variance $ 0 AQ X SP x $ 0 0 $ 0 Standard Cost SQ x SP X < Required 1 Required 2 >