Item 6

Camila Company has set the following standard cost per unit for direct materials and direct labor.

Direct materials (15 pounds @ $5 per pound)	$ 75
Direct labor (4 hours @ $16 per hour)	64

During June the company incurred the following actual costs to produce 8,100 units.

Direct materials (123,600 pounds @ $4.80 per pound)	$ 593,280
Direct labor (36,800 hours @ $16.20 per hour)	596,160

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.

(2) Compute the direct labor rate variance and the direct labor efficiency variance.

Compute the direct materials price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Complete this question by entering your answers in the tabs below. Compute the direct labor rate variance and the direct labor efficiency variance. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" ansv