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 @ $3 per pound) Direct labor (3 hours @ $14 per hour) $ 42 42 During May the company incurred the following actual costs to produce 8,200 units. Direct materials (116,800 pounds @ $2.80 per pound) Direct labor (29,500 hours @ $14.10 per hour) $ 327,040 415,950 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.