Exercise 8-11 (Algo) Direct materials and direct labor variances LO P3 Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds e $3 per pound) Direct labor ( 2 hours e $15 per hour) $42 30 During May the company incurred the following actual costs to produce 8,500 units. Direct matertals (122,700 pounds a $2.80 per pound) Direct laber (21,108 hours ge 515,10 per hour) 5343,560 318,610 AR= Actual Rate 5R= Standard Rate AO - Actual Quantity SQ= Standard Quantity AP = Actual Price SP= Standard Price 10) Compute the direct materials price and quantity variances. (2) Compute the drect labor rate variance and the direct labor efficiency variance. Complete this question by entering your answars in the tabs below. Compute the direct materials price and quantity variances. Note: Indicate the effect of each variance by selectiog favorable, unfavorable, or no vanance. Compute the direct labor rate variance and the direct laber efficiency voriance. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance, found "Rate per hour" answers to 2 decimal places, Exercise 8-11 (Algo) Direct materials and direct labor variances LO P3 Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds e $3 per pound) Direct labor ( 2 hours e $15 per hour) $42 30 During May the company incurred the following actual costs to produce 8,500 units. Direct matertals (122,700 pounds a $2.80 per pound) Direct laber (21,108 hours ge 515,10 per hour) 5343,560 318,610 AR= Actual Rate 5R= Standard Rate AO - Actual Quantity SQ= Standard Quantity AP = Actual Price SP= Standard Price 10) Compute the direct materials price and quantity variances. (2) Compute the drect labor rate variance and the direct labor efficiency variance. Complete this question by entering your answars in the tabs below. Compute the direct materials price and quantity variances. Note: Indicate the effect of each variance by selectiog favorable, unfavorable, or no vanance. Compute the direct labor rate variance and the direct laber efficiency voriance. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance, found "Rate per hour" answers to 2 decimal places