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

Direct materials (14 lbs. @ $5 per lb.) $70 Direct labor (4 hrs. @ $14 per hr.) 56

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

Direct materials (122,600 lbs. @ $4.70 per lb.) $ 576,220 Direct labor (39,400 hrs. @ $14.10 per hr.). 555,540

AH = Actual Hours

SH = Standard Hours

AR = Actual Rate

SR = Standard Rate

AQ = Actual Quantity

SQ = Standard Quantity

AP = Actual Price

SP = Standard Price

(1) Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.)

(2) Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.)

........................... )- Compute the direct labor rate variance and the direct labor efciencvr variance. Indicate whether each variance is favorable or unfavorable.