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 16,000 lbs. at $4.05 per lb. 16,635 hours at $19 per hour 30,000 0.5 lb. at $4.00 per lb. 0.5 hour at $20 per hour 1. Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. 2. Compute the direct labor rate and efficiency variances and identify each as favorable or unfavorable