Exercise $23-12($Algo$)$ Direct materials and direct labor variances LO P$3$

Camila 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 $(3$ hours @ $$16$ per hour$)$

$48$

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

Direct materials $(133,200$ pounds @ $$3\mathrm{.}80$ per pound$)$

$$506,160$

Direct labor hours @ $$16\mathrm{.}15$ per hour$)$

$450,585$

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 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.