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Direct mate Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it Exercise 2 manufactures. labor varlac Direct materials (10 lbs. @ $3 per Ib.) Direct labor (2 hrs. $12 per hr.) $24 P3 During June the company incurred the following actual costs to produce 9,000 units. $30 Direct materials (92,000 lbs. @ $2.95 per Ib.)..... $271,400 Direct labor (18,800 hrs. $12.05 per hr.).... $226,540 Compute the (1) direct materials price and quantity variances and (2) direct labor rate and efficiency vari- ances. Indicate whether each variance is favorable or unfavorable