Exerclse $8-12($Algo$)$ Direct materlals and direct labor varlances LO P$3$

Camila Company has set the following standard cost per unit for direct materlals and direct labor.

During June the company incurred the following actual costs to produce $8,500$ units.

Direct naterials $(121,800$ pounds $$3\mathrm{.}70$ per pound$)$

Direct labor $(37,600$ hours & $$15\mathrm{.}10$ per hour$)$

AR $=$ Actual Rate

$SR=$ Standard Rate

$AQ=$Actual Quantity

$SQ=$ Standard Quantity

$AP=$ Actual Price

$SP=$ Standard Price

$AH=$ Actual Hours

$(1)$ Compute the direct materlals price and quantity variances.

$(2)$ Compute the direct labor rate varlance and the direct labor efficlency varlance.

Complete this question by entering your answers in the tabs below.

Required $2$

Compute the direct materials price and quantity variances.

Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.