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

Direct materials $(16$ pounds @ $$3$ per pound$)$

Direct labor $(2$ hours @ $$15$ per hour$)$

$$48$

$30$

During May the company incurred the following actual costs to produce $8,600$ units.

Direct materials pounds @ $$2\mathrm{.}80$ per pound$)$

Direct labor $(21,200$ hours @ $$15\mathrm{.}10$ per hour$)$

$$393,400$

$320,120$

$AR=$ Actual Rate

$SR=$ Standard Rate

$AQ=$ Actual $Q$ uantity

$SQ=$ Standard Quantity

$AP=$ Actual Price

SP $=$ Standard Price

AH $=$ Actual Hours

$SH=$ Standard Hours

$(1)$ Compute the direct materials price and quantity variances.

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

Complete this question by entering your answers in the tabs below.

Required $1$

Compute the direct materials price and quantity variances.

Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.