Exercise 23-12 Direct materials and direct labor variances LO P2 Reed Corp, has set the following standard direct materials and direct labor costs per unit for the product it manufactures Direct materials (16 lbs. @ 4 per 1b. Direct labor (3 hrs. @ $16 per hr.) During June the company incurred the following actual costs to produce 8,300 units. Direct materials (135,700 lbs. @ $3.75 per lb.) Direct labor (28,100 hrs. @ $16.15 per hr.). $588,875 453,815 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, (2) Compute the direct labor rate variance and the direct labor efficiency variance Indicate whether each variance is favorable or unfavorable (1) Compute the direct materials price and quantity variances (2) Compute the direct labor rate variance and the direct labor efficiency variance Indicate whether each variance is favorable or unfavorable. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances and classify it as favorable or unfavorable Actual Cost Standard Cost (1) Compute the direct materials price and quantity variances (2) Compute the direct labor rate variance and the direct labor efficiency varlance. Indicate whether each variance is favorable or unfavorable. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable Actual Cost Standard Cost