Reed Corp.

Reed Corp. Has set the following standard direct materials and direct later cost per unit for the product it manufactures bill Direct materials ( 15 lbs. Direct Lahr @ 65 per 16.) 675 (3 hrs. (8 16 per hr. ) 47 During June the company incurred the following actual casts to produce 8,600 units. Direct materials Direct "'labor (181, 200 lbs. (@ 4.30 per (6.) $629, 760 (29,060 hs. @ 16 10 per hr.) 406. 900 AH = Actual hours SH = Standard hows AR = Standard make AQ = Actual quanity SQ = Standard quanity AP = Actual Price SP = Standard Price (1.) Compute the direct materials price and quantit Variances. ( Indicate the effect of each variant by selecting For Favorugly unfavorathe, and no variance. Y 2.) Compute the direct labor rate and the dine labor efficiency variance.1 Compute the direct materials pice and quanity variances. Indicat whethe each varianac is favoriable or unfavorable Actual cost Standard Cost