Exercise 8-12 (Algo) Direct materials and direct labor variances LO P3 Camila Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $4 per pound) Direct labor (3 hours @ $15 per hour) During June the company incurred the following actual costs to produce 9,000 units. Direct materials (137,900 pounds @ $3.75 per pound) Direct labor (30,500 hours @ $15.10 per hour) AR= Actual Rate SR Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP= Actual Price SP = Standard Price $ 60 45 $ 517,125 460, 550 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance.

Exercise 8-12 (Algo) Direct materials and direct labor variances LO P3 Camila Company has set the following standard cost per unit for direct materials and direct labor. During June the company incurred the following actual costs to produce 9,000 units. Oirect materials ( 137,900 pounds $3.75 per pound) Direct labor (30,500 hours (2) $15.10 per hour) AR=ActualRateSR=StandardRate AQ=ActualQuantitySQ=StandardQuantityAP=ActualPriceSP=StandardPrice 517,125460,550 Compute the direct materials price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Compute the direct labor rate variance and the direct labor efficiency variance. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance, Round "Rate per hour" answers to 2 decim