Exercise 08-11 Direct materials and direct labor variances LO P3 Hutto Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (25 lbs. $4 per 1b.) Direct labor hrs, $14 per hr.) $60 42 During May the company incurred the following actual costs to produce 8.200 units Direct materials (326,700 lbs. $3.00 per 1b.) Direct labor (20,400 hes. $14.10 per hr.). AH-Actual Hours SH Standard Hours AR Actual Rate SR Standard Rate AQ Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price $481,460 400,440 (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.) Required 1 Required 2 Compute the direct materials price and quantity variances. Indicate whether each variance is favorable or unfavorable. Actual Cost Required 2> Standard Cost Required 1 Required 2 Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorabl Actual Cost Standard Cost