Exercise 21-12 Direct materials and direct labor varlances LO P3 Reed Corp. has set the following standerd direct materials and direct labor costs per unit for the product it manufactures. Direct materials (15 lbs. $5 per 1b.) Direct labor (3 hrs. 515 per hr.) $75 45 During June the company incurred the following actual costs to produce 3,300 units. Direct materials (134,228 lbs. @ $4.78 per lb.) Direct labor (30,300 hrs. $15.2e per hr.). $630,740 460, 560 AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate 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 variance.) (2) Compute the direct labor rete variance and the direct labor efficiency varience. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no varlance.) 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 Coat Required 1 Required 2 > Complete this question by entering your answers in the tabs below. 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 Coat Standard Cost