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

Direct materials (16 lbs. @ $5 per lb.) $80 Direct labor (4 hrs. @ $15 per hr.) $60

During June the company incurred the following actual costs to produce 9,000 units. Direct materials (146,700 lbs. @ $4.75 per lb.) $696,825 Direct labor (40,300 hrs. @ $15.10 per hr.). $608,530

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.)

AP = Actual Price SP = Standard Price 1) Compute the direct materials price and quantity variances, (Indicate the effect of each variance by selecting for f unfavorable, and no variance. (2) Compute the direct labor rate variance and the direct labor efficiency variance (Indicate the effect of each varian for favorable, unfavorable, and no variance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances. Indicate whether each variance is favorable or unfavorable. Actual Cost Standard Cost Required 2 > AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP - Standard Price 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 selea for favorable, unfavorable, and no variance.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorat Actual Cost Standard Cost S 022513331 RES $ 0 01