Reed Corp, has set the following standard direct materials and direct labor costs per unit for the product it manufactures Direct materials (14 ibs. @ $4 per Ib.) Direct labor (3 hrs. @$15 per hr) $56 45 During June the company incurred the following actual costs to produce 8,900 units Direct materials (127,200 lbs. @ $3.80 per Ib.) Direct labor (31,400 hrs. @ $15.10 per hr). $483,360 474,140 (1) Compute the direct materials price and quantity variances Actual Cost Standard Cost