Exercise 23-12 Direct materials and direct labor variances mp3 Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (10 lbs. @ $3 per lb.) $30 Direct labor (2 hrs. @ $12 per hr.) $24 During June the company incurred the following actual costs to produce 9,000 units. Direct materials (92,000 lbs. @ $2.95 per Ib.) $271,400 Direct labor (18,800 hrs. @ $12.05 per hr.) $226,540 Compute the (1) direct materials price and quantity variances and (2) direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable