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 proo Direct materials (15 lbs. $3 per lb.) Direct labor (4 hrs.$15.00 per hr.) $45 60 During June the company incurred the following actual costs to produce 8,300 units Direct materials (126,880 1bs. $2.75 per 1b.) Direct labor (37,400 hrs. 15.15 per hr.). 5348,700 566,610 AQ Actual Quantit)y 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 va unfavorable Complete this question by entering your answers in the tab Required 1 Required 2 Compute the direct materials price and quantity varlances and classity it as favorable or unfavorable.