Exercise 8-15 (Algo) Direct materials and direct labor variances LO P3 The following information relates to production activities of Mercer Manufacturing for the year. Actual direct materials used Actual direct labor used Actual units produced Standard quantity and price per unit for direct materials Standard quantity and rate per unit for direct labor AR Actual Rate: SR Standard Rate AQ Actual Quantity SQ Standard Quantity AP SP Actual Price 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. 16,400 pounds at $4.25 per pound 17,035 hours at $23 per hour 30,800 0.50 pound at $4.20 per pound 0.50 hour at $24 per hour Required 1 Required 2 Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)