Exercise 23-15 (Algo) Direct materlals and direct labor variances LO p3 The following information relates to production activities of Mercer Manufacturing for the year. Mctual direot materials used Actual direct labor uned 18,000 pounde at $5.05 per pound 18,635 hour at $39 pere hour standard quantity and rate per unit for direct labor 0.50 hour at $40 per hour AR= Actual Rate SR = Standard Rate AQ= Actual Quantity SQ=StandardQuantity AP= Actual Price SP= Standard Price (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate and efficiency variances. Complete this question by entering your answers in the tabs below. Compute the direct materials price and quantity variances. (Indicate the affect of each variance by selecting favorable, unfavorable, or no variance.) Exercise 23-15 (Algo) Direct materlals and direct labor varlances LO P3 The following information relates to production activities of Mercer Manufacturing for the year. AR=ActualRateSR=StandardRateAQ=ActualQuantitySQ=StandardQuantityAP=ActualPriceSP=StandardPrice (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate and efficiency variances. Complete this question by entering your answers in the tabs below