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 Actual direct labor used Actual units produced 33,000 lbs. at $5.90 per lb 10,700 hours for a total of $221,490 63,000 Budgeted standards for each unit produced e 0.50 pounds of direct material at $5.85 per pound and 10 minutes of direct labor at $21.70 per hour AQ = Actual Quantity SQ Standard Quantity AP Actual Price SP = Standard Price AH = Actual Hours SH = Standard Hours AR Actual Rate SR = Standard Rate (1) Compute the direct materials price and quantity variances (2) Compute the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable Complete this question by entering your answers in the tabs below Required 1 Required 2 Compute the direct materials price and quantity variances. (Do not round intermediate calculations.) Actual Cost Standard Cost Required 1 Required 2