Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ \$4 per pound) $60 Direct labor (3 hours @ \$15 per hour) 45 During May the company incurred the following actual costs to produce 8,900 units. Direct materials (136,900 pounds @ $3.80 per pound) $520,220 Direct labor (30,600 hours @ $15.10 per hour) 462,060 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. \begin{tabular}{|l||l|} \hline Required 1 & Required 2 \\ \hline \end{tabular} Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{3}{|c|}{ Actual Cost } & & & & & & \multicolumn{5}{|c|}{ Standard Cost } \\ \hline AQ & x & AP & & AQ & x & SP & & & SQ & x & & P \\ \hline \multirow[t]{2}{*}{136,900} & x & $3.80 & & 136,900 & x & $4.00 & \multirow{3}{*}{$} & \multirow[b]{3}{*}{0} & & x & $ & 4.00 \\ \hline & $520,220 & & & & $547,600 & & & & & & & \\ \hline & & & $27,380 & & & & & & & & & \\ \hline \multicolumn{4}{|c|}{ Price variance } & $27,380 & & & & & & & & \\ \hline \multicolumn{4}{|c|}{ Quantity variance } & 0 & & & & & & & & \\ \hline \multicolumn{4}{|c|}{ Total direct materials variance } & & & & & & & & & \\ \hline \end{tabular} Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to 2 decimal places.)