Exercise 21-11 (Algo) Direct materials and direct labor variances LO P3 Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds @ $4 per pound) Direct labor (3 hours @ $15 per hour) $ 56 45 During May the company incurred the following actual costs to produce 8,700 units. Direct materials (124,500 pounds @ $3.80 per pound) Direct labor (30,900 hours @ $15.10 per hour) $ 473,100 466,590 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.