Exercise 21-11 Direct materials and direct labor variances LO P3 Mutto Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures 066 Direct materiain 16 be per ih. Direct labor (hrs. 16 yeehe. During May the company incurred the following actual costs to produce 8,600 units. Direct material (345,000 lb. 13.00 per 16.) Direct labor (30.60 hrs. 516.10 por hr.). $535,000 621, 460 AH-Actual Hours SH - Standard Hours 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, (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) (2) Compute the direct labor rate variance and the direct labor efficiency variance Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Rate per hour answers to 2 decimal places.) Complete this question by entering your answers in the tabs below. Required: Required 2 Compute the direct materials price and quantity variances. Indicate whether each variance is favorable or unfavorable Actual Cost Standard Cost Required 2 >