Exercise 8-15 Direct materials and direct labor variances LO P2 The following information describes production activities of Mercer Manufacturing for the year: Actual direct materials used 35,000 lbs. at $6.00 per lb Actual direct labor used 11,050 hours for a total of $230,945 Actual units produced 66,000 Budgeted standards for each unit produced are 0.50 pounds of direct material at $5.95 per pound and 10 minutes of direct labor at $21.90 per hour. (1) Compute the direct materials price and quantity variances. (Do not round intermediate calculations.) Actual Cost 35,000 Standard Cost