Exercise 21-12 Direct materials and direct labor variances LO P3 Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (15 lbs. $4 per 16.) Direct labor (hes. 515 per hr.) $60 45 Duting June the company incurred the following actual costs to produce 8.000 units. Direct materials (122, 300 lbs. 53.75 per 1b.) Direct Isbor (28,900 hes. 515.15 per hr). 3458,625 437,835 AH-Actual Hours SH - Standard Hours AR Actual Rate SR=Standard Rate AD = Actual Quantity SQ - Standard Quantity AP = Actual Price (1) Compute the direct materials price and quantity varlances. (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.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances. Indicate whether each variance is favorable or unfavorable. Actual Cost Standard Cont $ 0 S 0 S Required 1 Required 2 Compute the direct materials price and quantity variances. Indicate whether each variance is favorable or unfavorable. Standard Cost Actual Cont 0 $ 0 $ 0 $ O 0 Required 2 > 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 s 0 s 0 $ 0 0