Direct materials (15 lbs. @ $5 per lb.) Direct labor (4 hrs. @ $15 per hr.) $75 60 During May the company incurred the following actual costs to produce 8,100 units. Direct materials (123,500 lbs. @ $4.80 per 1b.) Direct labor (37,000 hrs. @ $15.10 per hr.). $592,800 558,700 AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance Actual Cost AH X 37,000 Standard Cost SHX | AR AH X SR 15.00 SR $ 15.10 37,000 $ 558,700 555,000 $ 3,700 0 $ 3,700