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 16,900 pounds at $4.50 per 17,535 hours at $28 per hou 31,800 0.50 pound at $4.45 per pou 0.50 hour at $29 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. 121 Compute the direct laborate and efficiency variances SP = Standara 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 fa variance.) Actual Cost Standard Cost 15 Saved Help Save & Exit Sub Check my wor vurunc.) Actual Cost Standard Cost Saved Help Save & Eitt Crec Compute the direct labor rate and efficiency variances. (Indicate the effect of each variance by selecting favorable, una, Actual Cost Standard Cost