Required information (The following information applies to the questions displayed below.) Hart Company made 3,320 bookshelves using 22,320 board feet of wood costing $305,784. The company's direct materials standards for one bookshelf are 8 board feet of wood at $13.60 per board foot. AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP - Standard Price (1) Compute the direct materials price and quantity variances and classify each as favorable or unfavorable. (2) Hart applies management by exception by investigating direct materials variances of more than 5% of actual direct materials costs. Which direct materials variances will Hart investigate further? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances and classify each as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Actual Cost Standard Cost 0 $ 0 0 $ 01 0 $ Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (14 lbs. $4 per lb.) Direct labor (3 hrs. @ $14 per hr.) $56 42 During June the company incurred the following actual costs to produce 8,800 units. Direct materials (125, 800 lbs. @ $3.75 per lb.) Direct labor (30,700 hrs. a $14.20 per hr.). $ 471,750 435,940 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 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 0 $ 0 $ 0 $ 0 0