Exerclse 21-12 (Algo) Direct materlals and direct labor varlances LO P3 Camila Company has set the following standard cost per unit for direct materials and direct labor. Direct materials ( 16 pounds 8 \$4 per pound) $64 Direct labor ( 4 hours e $16 per hour) 64 During June the company incurred the following actual costs to produce 8,000 units. Direct materials (130,000 pounds $3.75 per pound) 487,500 Direct labor (36,100 hours 9516,20 per hour) 584,820 AR = Actual Rate SR=Standard Rate AQ= Actual Quantity SO = Standard Quantity AP = Actual Price SP = Standard Price (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance. Required 1 Required 2 Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or Required 2