Exercise 23-11 (Algo) Direct materials and direct labor variances LO P3 Lucia Company has set the following standard cost per unit for direct materials and direct labor. Directmaterials(15poundse$4perpound)Directlabor(2hours&$15perhour)$030 During May the company incurred the following actual costs to produce 8,600 units. Direct materials (131,900 pounds \& $3,80 per pound) Direct labor (21,500 hours e $15.10 per hour). 501,220324,650 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. (2) Compute the direct labor rate variance and the direct labor efficiency valiance. Compute the direct materials price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance