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 16,500 pounds at $4.30 per pound Actual direct labor used 17,135 hours at $24 per hour Actual units produced 31,000 Standard quantity and price per unit for direct materials 0.50 pound at $4.25 per pound Standard quantity and rate per unit for direct labor 0.50 hour at $25 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 varlance by selecting favorable, un variance.) Actual Cost Standard Cost Required Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Requirdd 2 Compute the direct labor rate and efficiency variances, (Indicate the effect of each variance by selecting favorable, unfavor Actual Cost Standard Cost 5