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. 54 per 1b.) Direct labor (3 hrs. 515 per he 560 45 During June the company incurred the following actual costs to produce 8,300 units Direct materials (127,000 lbs.53.70 per lb.) Direct Isbor (20.300 hrs. 515.15 per hr.). $469,900 428,745 AH = Actual Hours SH - Standard Hours AR - Actual Rate SR Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP - Standard Price 11) Compute the direct materials price and quantity variances (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 Standard Cost 5 5 0 0 Reguired 2 Segured 1 Required 2 Compute the direct labor rate variance and the direct labor etfidency variance Indicate whether each variance is favorable or unfavorable. Actual con Standard Cost 5 5 5