Exercise 8-11 Direct materials and direct labor variances LO P2 Hutto Corp has set the following standard direct materials and direct labor costs per unit for the product it manufactures Direct materials (15 lbs$4 per b.) Direct labor 3 hrs$15 per hr) $60 45 During May the company incurred the following actual costs to produce 9,000 units Direct materials (138 ,000 lbs$375 per lb) Direct labor (31,000 hrs. $15.10 per hr.) $517500 68,100 (1) Compute the direct materials price and quantity variances Q) Compute the drect labor rate variance and the direct labor efficiency variance, Indicate whether each variance is favorable or unfavorable Actual Cost Standard Cost