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Exerclse 8-15 (Algo) Direct materlals and dlrect labor variances LO P3 The following information relates to production activities of Mercer Manufacturing for the year. AR=ActualRateSR=StandardRateAQ=ActualQuantitySQ=StandardQuantityAP=ActualPriceSP=StandardPrice (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate and efficiency variances. Complete this question by entering your answers in the tabs below. Compute the direct materials price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Exerclse 8-15 (Algo) Direct materlals and dlrect labor varlances LO P3 The following information relates to production activities of Mercer Manufacturing for the year. AR=ActualRateSR=StandardRateAQ=ActualQuantitySQ=StandardQuantityAP=ActualPriceSP=StandardPrice (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate and efficiency variances. Complete this question by entering your answers in the tabs below. Compute the direct labor rate and efficiency variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance