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

Direct materials (14 lbs. @ $3 per lb.)$42Direct labor (4 hrs. @ $15 per hr.)60

During June the company incurred the following actual costs to produce 8,900 units.

Direct materials (127,000 lbs. @ $2.75 per lb.)$349,250Direct labor (39,000 hrs. @ $15.15 per hr.).590,850

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.