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 AR=ActualRateSR=StandardRateAQ=ActualQuantitySQ=StandardQuantityAP=ActualPriceSP=StandardPrice (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. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Evercise 8.15 (Algo) Direct materials and direct labor variances LO P3 The following iniormstion relstes 10 production bctivities of Mercer Manufacturing for the year actual airect materibls used 17,600 pounds at 54.85 per pound actual direct labor used 18,235 hours at $35 ser hour Actual units produced 33,238 Standard quantity and price per unit for direct moteris1s 8.50 pound at 54.80 per pound Standard quartity and rate per unit for direct labor b.50 hour at $36 ber hour AR=ActublRoteSR=StandardRoreAQ=ActualQuantitySQ=StandardQuantityAP=ActualPriceSP=StandardPrice (1) Compute the direct materials price and quantity variances (2) Compute the direc labor rate and efficiency variances Complete this question by entering your answers in the tabs below