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 (15 pounds @ $3 per pound) Direct labor (2 hours @ $16 per hour) $ 45 32 During May the company incurred the following actual costs to produce 8,300 units. Direct materials (126,900 pounds @ $2.80 per pound) Direct labor (20,600 hours @ $16.10 per hour) AR Actual Rate SR Standard Rate AQ Actual Quantity SQ Standard Quantity AP Actual Price $ 355,320 331,660 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. Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, Actual Cost AQ x AP x Price variance Quantity variance Total direct materials variance $ 0 000 AQ x SP x $ 0 $ 0 Standard Cost SQ C x SP x (Beled Required 2> Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or not variance. Round "Rate per hour" answers to 2 decimal places.) Actual Cost AQ O AR O AQ Rate variance Efficiency variance Total direct labor variance $ 000 Standard Cost SR SQ SR S 0