Exerclse 8-11 Direct materlals and direct labor varlances LO P2 Hutto Corp. has set the following standard dlrect materlals and direct labor costs per unlt for the product It manufactures. Direct materials (16 lbs.$4 per 1b.) Direct labor (4 hrs. $15 per hr.) $64 60 During May the company Incurred the following actual costs to produce 8,600 units. Direct naterials (139,788 lbs. $3.88 per 1b.) Direct labor (37,988 hrs.$15.18 per hr.) $538,868 572,298 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 materlals price and quantity varlances. (2) Compute the direct labor rate varlance and the direct labor efficlency varlance. Indicate whether each varlance Is favorable or Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances and classify it as favorable or unfavorable. Required 2> Exerclse 8-11 Direct materlals and direct labor varlances LO P2 Hutto Corp. has set the following standard dlrect materlals and direct labor costs per unlt for the product It manufactures. Direct materials (16 lbs. $4 per lb.) Direct labor (4 hrs. $15 per hr.) $64 60 During May the company Incurred the following actual costs to produce 8,600 units. Direct naterials (139,788 lbs. $3.88 per 1b.) Direct labor (37,988 hrs.$15.18 per hr.) $538,868 572,298 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 materlals price and quantity varlances. (2) Compute the direct labor rate varlance and the direct labor efficlency varlance. Indicate whether each varlance is favorable or Complete this question by entering your answers in the tabs below. Required 1Required 2 Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable. Required 1