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	17,600 pounds at $4.85 per pound
Actual direct labor used	18,235 hours at $35 per hour
Actual units produced	33,200
Standard quantity and price per unit for direct materials	0.50 pound at $4.80 per pound
Standard quantity and rate per unit for direct labor	0.50 hour at $36 per hour

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. (2) Compute the direct labor rate and efficiency variances.

Complete this question by entering your answers in the tabs below. 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.) Actual Cost Standard Cost $ 0 $ 0 $ O 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct labor rate and efficiency variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Cost Standard Cost X $ O $ $ 0 $ $ 0 0