The following information describes production activities of Mercer Manufacturing for the year.

Actual direct materials used	28,000 lbs. at $4.90 per lb.
Actual direct labor used	8,650 hours for a total of $174,730
Actual units produced	51,600

Budgeted standards for each unit produced are 0.50 pounds of direct material at $4.85 per pound and 10 minutes of direct labor at $21.20 per hour. AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.

Required 1 Required 2 Compute the direct materials price and quantity variances. (Do not round intermediate calculations.) Actual Cost Standard Cost AQ SP SP AP 0 Direct materials price variance 0 Unfavorable birect materials quantity variance O Unfavorable Unfavorable Total direct materials variance Required 1 Required 2 Required 1 Required 2 Compute the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. (Do not round intermediate calculations.) Actual Cost Standard Cost AR AH SR AH SH SR Direct labor rate variance 0 Favorable Direct labor efficiency variance O Unfavorable Total direct labor variance Favorable