Exercise 8-15 (Algo) Direct materials and direct labor variances LO P3 The following information relates to nroduction activities of Mercer Manufacturing for the vear. 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. Compute the direct materials price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. The following information relates to production activities of Mercer Manufacturing for the year. Actual direct materials used 17,000 pounds at $4.55 per pound Actual direct labor used 17,635 hours at $29 per hour Actualunitsproduced32,000 Standard quantity and price per unit for direct materials 0.50 pound at $4.50 per pound Standard quantity and rate per unit for direct labor 0.50 hour at $30 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. Compute the direct labor rate and efficiency variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance