Exercise 21-12 Direct materials and direct lobor variances LO P3 Reed Corp has set the following standard direct materials and direct labor costs per und for the product it manufactures Direct materials (15 lbs. 1 per lb.) Direct labor (4 hrs. $16 per hr.) 560 During June the company incurred the following actual costs to produce 8,500 units. Direct materials (129,680 lbs. $3.75 per 1b.) Direct labor (38, see hrs. $16.20 per he.). $466,00 623,72 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 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 und Standard Actual Cost