Exerclse 8-15 Direct meterlals and direct labor verlances 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 31,88 Ibs. at $5.88 per 1b 19,689 hours for a total of $217,3ee 63,880 Budgeted standards for each unit produced are 0.50 pounds of direct materlal at $5.75 per pound and 10 minutes of direct labor at $21.50 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 materlals price and quantity varlances. (2) Compute the direct labor rate and efficlency varlances. Indicate whether each varlance 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.) Required 2> (1) Compute the direct materlals price and quantity varlances. (2) Compute the direct labor rate and efficiency varlances. Indicate whether each varlance Is favorable or unfavorable. Complete this question by entering your answers in the tabs below. Required 1Required 2 Compute the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. (Do not round intermediate calculations.) Actual Cost Standard Cost Required 1 Required 2