Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (14 lbs. @ 54 per lb.) Direct labor (3 hrs. $14 per hr.) During June the company incurred the following actual costs to produce 8,700 units. Direct materials (124,600 lbs. @ $3.75 per lb.) Direct labor (30,500 hrs. @ $14.15 per hr.). $467,250 431,575 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 (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.) 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 > Check my Use the following information for the Exercises below. [The following information applies to the questions displayed below.) Sedona Company set the following standard costs for one unit of its product for this year Direct material (30 lbs. $2.20 per Ib.) Direct labor (20 hrs. @ $4.20 per hr.) Variable overhead (20 hrs. @ $2.20 per hr.) Fixed overhead (20 hrs. @ $1.10 per hr.) Total standard cost $66.69 84.00 44.69 22.09 $216.00 The $3.30 ($2.20+ $110) total overhead rate per direct labor hour is based on an expected operating level equal to 60% of the factory's capacity of 68,000 units per month. The following monthly flexible budget information is also available. 551 Operating Levels (% of capacity) 68 37.000 40,300 44,200 748,000 816,000 884,000 Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) Variable overhead Fixed overhead Total overhead $1,645,600 897,600 $2,543,200 $1.295,200 897,600 $2.692.800 $1,944,800 897,600 52.842,400 During the current month, the company operated at 55% of capacity, employees worked 728,000 hours, and the following actual overhead costs were incurred