The following information describes production activities of Mercer Manufacturing for the year: Budgeted standards for each unit produced are 0.50 pounds of direct material at $5.85 per pound and 10 minutes of direct labor at $21.70 per hour. (1) Compute the direct materials price and quantity variances. (Do not round intermediate calculations.) (2) Compute the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. (Do not round intermediate calculations.)