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

Direct materials (16 lbs. @ $4 per lb.)			$64
Direct labor (4 hrs. @ $15 per hr.)			60

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

Direct materials (140,200 lbs. @ $3.80 per lb.)		$	532,760
Direct labor (38,900 hrs. @ $15.20 per hr.).			591,280

(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 Check my wor below Complete this question by entering your answers in the tabs Required 1 Required 2 Compute the direct labor rate variance and iency variance. Indicate whether each variance is favorable or unfavorable. Actual Cost Standard Cost IN TUT