Reed Corp. has set the following standard direct materials and direct labor costs per unit for the productil manufactures. $30 Direct materials (10 lbs. @ $3 per lb.)..... Direct labor (2 hrs. @ $12 per hr.)... During June the company incurred the following actual costs to produce 9,000 units. Direct materials (92,000 lbs. @ $2.95 per lb.)... Direct labor (18,800 hrs. @ $12.05 per hr.). $271,400 226,540 Compute the (1) direct materials price and quantity variances and (2) direct labor rate and en ances. Indicate whether each variance is favorable or unfavorable. ect labor rate and efficiency vari