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.) $60 Direct labor (4 hrs. @ $14 per hr.) 56 During May the company incurred the following actual costs to produce 8,200 units. Direct materials (125,700 lbs. @ $3.80 per lb.) $ 477,660 Direct labor (36,900 hrs. @ $14.10 per hr.). 520,290 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.)

Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable.

Actual Cost								Standard Cost
AH	x	AR		AH	x	SR		SH	x	SR
	x				x				x
			$0	0			$0
				$0
				0

Compute the direct materials price and quantity variances. Indicate whether each variance is favorable or unfavorable.

Actual Cost			-25140				0	Standard Cost
AQ	x	AP		AQ	x	SP		SQ	x	SP
125,700	x	$3.80		125,700	x	$4.00			x	$4.00
	$477,660				$502,800
			$25,140	25140			$0
Direct materials price variance				$25,140	Favorable
Direct materials quantity variance				0	Unfavorable
Total direct materials variance					Favorable