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 $(15$ pounds & $$4$ per pound$)$ $$60$

Direct labor $(2$ hours & $$14$ per hour$)60$

$28$

During May the company incurred the following actual costs to produce $8,100$ units.

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.

Complete this question by entering your answers in the tabs below.

Required $2$

Compute the direct materials price and quantity variances.