Exercise 21-15 Direct materials and direct labor variances LO P3 The follciwirig describes production activities of Mercer Manufacturing for the year Actul direct materials used Actual direct labor used Actual units produced 28,000 lbs. at 54.90 per lb. 8,650 hours for a total of $174,730 51,600 Budgeted standards for each unit produced are 0 50 pound of direct materiaPat $485 per pound and 10 minutes of direct labor at $21.20 per hour AH - Actual Hours SH - Standard Hours AR Actual Rate SR Standard Rate AQ = Actual Quantity SQ - Standard Quantity AP Actual Price SR = Standard Price (1) Compute the direct materials price and quantity variances and classify each as favorable or unfavorable (Indicate the effect of ench variance by selecting for favorable, unfavorable, and no variance. Round "Cost per unit" answers to 2 decimal places.) (2) Compute the direct labor rate and efficiency variances and classify each as favorable or unfavorable (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 Puduled 2 Compute the direct material price and quantity variances and classify each as favorable or unfavorable. (Do not round Intermediate calculations) Action Sunand Cout SES mpute the direct materials price and quantity variances and classify each as favorable or unfavorable (Indicate the effect of varionce by selecting for favorable, unfavorable, and no variance. Round "Cost per unit" answers to 2 decimal places.) ompute the direct labor rate and efficiency variances and classify each as favorable or unfavorable (Indicate the effect of each mce by selecting for favorable, unfavorable, and no variance.) complete this question by entering your answers in the tabs below. Sequired 2 Required compute the direct labor rate and efficiency variances and classify each as favorable or unfavorable. (Do not round intermediate calculations.) Actual con Standard Cost