Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures Direct materials (15 lbs.$5 per lb.) Direct labor (3 hrs.@ $14 per hr.) %75 42 During June the company incurred the following actual costs to produce 8,100 units. Direct materials (124,800 lbs.@ $4.80 per lb.) Direct labor (27,700 hrs. $14.10 per hr.). $599,040 390,570 (1) Compute the direct materials price and quantity variances. Actual Cost Standard Cost