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. points $56 Direct materials (14 lbs. @ $4 per lb.) Direct labor (3 hrs. $14 per hr.) eBook During June the company incurred the following actual costs to produce 9.000 units. Mint Direct materials (128,300 lbs. @ $3.70 per lb.) Direct labor (30,5ee hrs. @ $14.10 per hr.). $474,710 430.259 Print AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate References 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 varlance by selecting for favorable, unfavorable, and no varlance.) (2) Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each varlance by selecting for favorable, unfavorable, and no varlance.) Required 1 Required 2 Compute the direct materials price and quantity variances. Indicate whether each variance is favorable or unfavorable. Actual Cost Standard Cost S 0 S 0 Required 1 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 | S 0 SOP