Exercise $21-11($Algo$)$ Direct materials and direct labor variances LO P$3$

Lucia Company has set the following standard cost per unit for direct materials and direct labor.

Direct materials $(16$ pounds @ $$5$ per pound$)$$ $80$Direct labor $(2$ hours @ $$14$ per hour$)28$

During May the company incurred the following actual costs to produce $8,800$ units.

Direct materials $(143,700$ pounds @ $$4\mathrm{.}80$ per pound$)$$ $689,760$Direct labor $(21,200$ hours @ $$14\mathrm{.}10$ per hour$)298,920$

AR $=$ Actual Rate

SR $=$ Standard Rate

AQ $=$ Actual Quantity

SQ $=$ Standard Quantity

AP $=$ Actual Price

SP $=$ Standard Price

AH $=$ Actual Hours

SH $=$ Standard Hours

$(1)$ Compute the direct materials price and quantity variances.

$(2)$ Compute the direct labor rate variance and the direct labor efficiency variance.