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Reed lCorp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials [16 lbs. 8

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Reed lCorp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials [16 lbs. 8 $3 per 1h.) $43 Direct labor [3 hrs. 8 $14 per hr.} 42 During June the company incurred the following actual costs to produce 8.800 units. Direct materials [142,900 lbs. 8 $2.00 per 1h.) $400,120 Direct labor [31,100 hrs. I $14.15 per hr.). 440,065 AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate A0 = Actual Quantity 50 = 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] (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.) x Answer is not complete. 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 AQ X AP AQ X SP SQ X SP 142,900 X $ 2.80 142,900 X $ 3.00 8,000 X X $ 3.00 $ $ 400,120 428,700 $ 24,000 $ $ 28,580 404,700 Direct materials price variance v $ 28,580 Favorable V Direct materials quantity variance V 404,700 Unfavorable Total direct materials variance Favorable(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.) x Answer is not complete. 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 unfavorable. Actual Cost Standard Cost 0 $ 0 $ 0 O 0

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