Exercise 21-15 Direct materials and direct labor variances LO P3 The following describes production activities of Mercer Manufacturing for the year. Budgeted standards for each unit produced are 0.50 pound of direct material at $4.20 per pound and 10 minutes of direct labor at $20.50 per hour. AH=ActualHoursSH=StandardHoursAR=ActualRateSR=StandardRateAQ=ActualQuantitySO=StandardQuantityAP=ActualPriceSP=StandardPrice (1) Compute the direct materials price and quantity variances and classify eoch as fovorable or unfavorable. (indicate the effect of each 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 eoch 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. Complete this question by entering your answers in the tabs below. Compute the direct materials price and quantity variances and classify each as favorable or unfavorable. (Do not round intermediate calculations.) Compute the direct labor rate and efficiency variances and ciassify each as favorable or unfavorable. (Do not round intermediate calculations.)