Exercise $23-11($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 @ $$4$ per pound$)$ $ $64$

Direct labor $(4$ hours @ $$14$ per hour$)56$

During May the company incurred the following actual costs to produce $8,500$ units.

Direct materials $(138,800$ pounds @ $$3\mathrm{.}80$ per pound$)$ $ $527,440$

Direct labor $(38,200$ hours @ $$14\mathrm{.}10$ per hour$)538,620$

AR $=$ Actual Rate

SR $=$ Standard Rate

AQ $=$ Actual Quantity

SQ $=$ Standard Quantity

AP $=$ Actual Price

SP $=$ Standard Price

AH $=$ Actual Hours

SH $=$ Standard Hours

Use the chart attached for each part

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

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