Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (14 lbs Direct labor (3 hrs. $16 per hr.) $4 per lb.) $56 48 During June the company incurred the following actual costs to produce 8,300 units. Direct materials (118,400 lbs. $3.80 per lb.) Direct labor (29,200 hrs. $16.10 per hr.). $449,920 470,120 Actual Quantity Standard Quantity AQ SQ 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. Compute the direct materials price and quantity variances and classify it as favorable or unfavorable Standard Cost Actual Cost Required 2 Required 2 il Required 2 Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance favorable or unfavorable. Actual Cost Standard Cost Required 1 Required 2