The following information relates to production activities of Mercer Manufacturing for the year. Actual direct materials used Actual direct labor used Actual units produced Standard quantity and price per unit for direct materials Standard quantity and rate per unit for direct labor 16,600 pounds at $4.35 per pound 17,235 hours at $25 per hour 31,200 0.50 pound at $4.30 per pound 0.50 hour at $26 per hour AR = Actual Rate SR Standard Rate AQ Actual Quantity Standard Quantity SQ AP Actual Price SP Standard Price: (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate and efficiency variances. D 13 Required 1 Required 2 Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Cost Standard Cost Required Required 2 > Required 1 Required 2 Compute the direct labor rate and efficiency variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Cost Standard Cost D