Chapter 8 question 4Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufacturesDirect materials (16 lbs. @ $4 per lb.) $64Direct labor (3 hrs. @ $15 per hr.) $45During June the company incurred the following actual costs to produce 8,500 units Direct materials (138,300 lbs. @ $3.70 per lb.)Direct labor (29,800 hrs. @ $15.10 per hr.)

Homework i Saved Help Save & Exit Subm Check my work (1) Compute the direct materials price and quantity variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) (2) Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances. Indicate whether each variance is favorable or unfavorable. Actual Cost Standard Cost