Direct materials (15 pounds @ $3 per pound) Direct labor (3 hours @ $15 per hour) $ 45 45 During May the company incurred the following actual costs to produce 8,500 units. Direct materials (130,900 pounds @ $2.80 per pound) Direct labor (29,300 hours @ $15.10 per hour) $ 366,520 442,430 AR Actual Rate SR = = Standard Rate AQ Actual Quantity = SQ Standard Quantity AP Actual Price SP=Standard Price (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance. 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 Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to 2 decimal places.) Actual Cost Standard Cost