Hutto Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. $60 42 Direct materials (15 lba. e $4 per lb.) Direct labor (3 hrs. e $14 per hr.) During May the company incurred the following actual costs to produce 8,800 units. Direct materials (134,700 lbs. $3.80 per lb.) Direct labor (30,000 hrs. $14.10 per hr.). $511,860 423,000 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 variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable. Required 1 Required 2 Compute the direct materials price and quantity variances and classify it as favorable or unfavorable. Actual Cost Standard Cost AQ AP AQ sa SP SP OFavorable oUnfavorable Favorable Direct materials price variance Direct materials quantity variance Reared 1 Required 2 > Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable. Actual Cost Standard Cost AR SR SH SR %24 Direct labor rate variance o Unfavorable o Unfavorable Unfavorable Direct labor efficiency variance