*Please Answer the Blue Outlined Boxes Above, Problem Sections 1-2 .

The following information relates to production actlvitles of Mercer Manufacturing for the year. Actual direct materials used Actual direct labor used Actual units produced Standard quantity and price per unit for direct naterials Standard quantity and rate per unit for direct labor 16,300 pounds at $4.20 per pound 16,935 hours at $22 per hour 39,606 0.50 pound at $4.15 per pound 0.56 hour at $23 per hour AR=ActualRateSR=StandardRateAQ=ActualQuantltySQ=StandardQuantltyAP=ActualPrlceSP=StandardPrlce (1) Compute the direct materlals price and quantlty varlances. (2) Compute the direct labor rate and efficlency varlances. Complete this question by entering your answers in the tabs below. Compute the direct materials price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Required 2 Favorable No variance Unfavorable Compute the direct labor rate and efficiency variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Unfavorable Favorable No variance