Hutto Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures.

Direct materials (15 lbs. @ $5 per lb.)			$75
Direct labor (3 hrs. @ $14 per hr.)			42

During May the company incurred the following actual costs to produce 8,700 units.

Direct materials (133,400 lbs. @ $4.80 per lb.)		$	640,320
Direct labor (29,900 hrs. @ $14.10 per hr.).			421,590

AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price (1) Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) (2) Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Rate per hour" answers to 2 decimal places.)

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The following describes production activities of Mercer Manufacturing for the year.

Actual direct materials used	36,000 lbs. at $6.05 per lb.
Actual direct labor used	11,100 hours for a total of $233,100
Actual units produced	66,030

Budgeted standards for each unit produced are 0.50 pound of direct material at $6.00 per pound and 10 minutes of direct labor at $22.00 per hour. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price

(1) Compute the direct materials price and quantity variances and classify each as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Cost per unit" answers to 2 decimal places.) (2) Compute the direct labor rate and efficiency variances and classify each as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.)