Hutto Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (15 lbs. @ $4 per lb.) Direct labor (3 hrs. @ $15 per hr.) $60 45 During May the company incurred the following actual costs to produce 9,000 units. Direct materials (138,000 lbs. @ $3.75 per Ib.) Direct labor (31,000 hrs. @ $15.10 per hr.). $517,500 468,100 (1) Compute the direct materials price and quantity variances. Actual Cost Standard Cost (2) Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable. Actual Cost Standard Cost