Exercise 23-15 Direct materials and direct labor variances LO P3 The following describes production activities of Mercer Manufacturing for the year Actual direct materials used Actual direct labor used Actual units produced 33,00 lbs, at 5.90 per 15 10,700 hours for a total of $221,490 63.000 Budgeted standards for each unit produced are 050 pound of direct material at $5.85 per pound and 10 minutes of direct laborat $2170 per hour 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 puce and quantity variances and classify each as favorable or unfavorable (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Cost per unit" answers to 2 decimal places.) (2) Compute the direct labor rate and efficiency variances and classily each as favorable or unfavorable (Indicate the effect of each variance by selecting for favorable, unfovorable, and no variance.) 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 each an avorable or unfavorable. (Oo not cound internetist calculations) Budgeted standards for each unit produced are 0.50 pound of direct material at $5.85 per pound and 10 minutes of direct labor at $2170 per hour 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 and classify each as favorable or unfavorable (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Cost per unit" answers to 2 decimal places.) (2) Compute the direct labor rate and efficiency variances and classify each as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) 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 each as favorable or unfavorable. (Do not round Intermediate calculations.) Actual Cost Standard Cost 5 0 $ 0 $ 0 0 Required 2 > ACCU Units Pro Budgeted standards for each unit produced are 050 pound of direct material at $5 85 per pound and 10 minutes of direct laborat $2170 per hour 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 and classify each as favorable or unfavorable (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Cost per unit" answers to 2 decimal places.) (2) Compute the direct labor rate and efficiency variances and classify each as favorable or unfavorable (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Complete this question by entering your answers in the tabs below. ces Required: Required 2 Compute the direct labor rate and efficiency variances and classify each as favorable or unfavorable. (Do not round Intermediate calculations) Actual Cost Standard Cont 0 $ $ 0