Exercise $21-15($Algo$)$ Direct materials and direct labor variances LO P$3$

The following information relates to production activities of Mercer Manufacturing for the year.

Actual direct material

Actual direct labor $us$

Actual units produced

Standard quantity and

materials

Standard quantity and

$AR=$ Actual Rate

$SR=$ Standard Rate

$AQ=$ Actual Quantity

$SQ=$ Standard Quantity

$AP=$ Actual Price

$SP=$ Standard Price

Actual direct materials used $,17,800$ pounds $at$ $$4\mathrm{.}95$ per

$AR=$ 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 and efficiency variances.

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

Compute the direct materials price and quantity variances. $($Indicate the effect of each variance by selecting favorable, unfavorable, or no

variance.$)$