Exercise 23-11 Direct materials and direct labor variances LO P2 Hutto Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures Direct materials (14 Ibs. $4 per lb.) Direct labor (3 hrs. @ $15 per hr.) $56 45 During May the company incurred the following actual costs to produce 8,100 units. Direct materials (116,200 lbs. @ $3.80 per lb.) Direct labor (27,600 hrs. @ $15.10 per hr.). $441,560 416,760 (1) Compute the direct materials price and quantity variances Actual Cost Standard Cost