Exercise 21-12 Direct materials and direct labor variances LO P2 Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (14 Ibs. $3 per lb.) Direct labor (3 hrs. @$16 per hr $42 48 During June the company incurred the following actual costs to produce 8,100 units Direct materials (116,400 lbs.$2.80 per lb.) Direct labor (27, 400 hrs. $16.10 per hr.). 441,140 (1) Compule the direct materials price and quantity variances Actual Cost Sta ost