Exercise 21-11 Direct materials and direct labor variances LO P2 Hutto Corp, has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (16 lbs. @ $5 per lb.) Direct labor (2 hrs. $15 per hr.) $80 30 During May the company incurred the following actual costs to produce 8,600 units. Direct materials (140,200 lbs. @ $4.80 per lb.) Direct labor (21,700 hrs. $15.10 per hr.). $672,960 327,670 AQ - Actual Quantity SQ - Standard Quantity AP - Actual Price SP = Standard Price AH = Actual Hours SH - Standard Hours AR - Actual Rate SR - Standard Rate (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances and classify it as favorable or unfavorable. Actual Cost Standard Cost $ 0 0 $ 0 0 Heutred Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable. Actual Cost Standard Cost + $ 0 $ $ 0