Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures.

Direct materials (15 lbs. @ $5 per lb.)			$75
Direct labor (2 hrs. @ $16 per hr.)			32

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

Direct materials (131,200 lbs. @ $4.75 per lb.)		$	623,200
Direct labor (20,800 hrs. @ $16.10 per hr.).			334,880

AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable.

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances and classify it as favorable or unfavorable. Actual Cost Standard Cost AQ AQ SQ AP SP SP 0 0 0 $Favorable Direct materials price variance Direct materials quantity variance 0 Unfavorable Total direct materials variance Favorable Required 1Required 2 Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable Actual Cost Standard Cost AH AR AH SR SH SR 0 $Unfavorable Direct labor rate variance Direct labor efficiency variance 0 Unfavorable Unfavorable Total direct labor variance