Exercise 21-12 Direct materials and direct labor variances LO P2 Reed Corp. has set the following standard direct materials and direct labor coses per unit for the product it manuectures Direct materials (16 lbs. 54 per 1b.) Direct labor (3 hrs. $24.ee per hr.) $56 42 During one the company incurred the following actual costs to produce 8.900 units Direct materials (145,200 lbs. $3.50 per Direct labor (31,see hrs. $14.2e per hr.). 5551.763 447,32 AQ - Actual Quantity SQ Standard Quantity AP Actual Price SP- Standard Price AH-Actual Hours SH - Standard Hours AR Actuel Rate SR Standard Rate (1) Compute the direct materiais price and quantity varignces (2) Compute the direct inborrate variance and the direct labor efficiency variance Indicate whether each variance is favorable of unfavorable Complete this question by entering your answers in the tabs below. Recured Required 2 Compute the direct materials price and quantity variances and classify it as favorable or unfavorable Actual Cout Standard Cost Compute the direct laborate variance and the direct labor efficiency wariance Indicate whether schwarance is favorable or unfavorable (Reg 1