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

The following describes production activities of Mercer Manufacturing for the year.

Actual direct materials used $20,000lbs.at$ $$4\mathrm{.}25$ per $lb.$

Actual direct labor used $7,265$ hours for a total $of$ $$140,941$

Actual units produced $42,030$

Budgeted standards for each unit produced are $0\mathrm{.}50$ pound of direct material at $$4\mathrm{.}20$ per pound and $10$ minutes of direct labor at

$$20\mathrm{.}40$ per hour.

$AH=$ Actual Hours

$SH=$ Standard Hours

$AR=$ 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 and classify each as favorable or unfavorable. $($Indicate the effect of

each variance by selecting for favorable, unfavorable, and no variance. Round "Cost per unit" answers to $2$ decimal places.$)$

$(2)$ Compute the direct labor rate and efficiency variances and classify each as favorable or unfavorable. $($Indicate the effect of each

variance by selecting for favorable, unfavorable, and no variance.$)$

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

Compute the direct materials price and quantity variances and classify each as favorable or unfavorable. $($Do not round intermediate

calculations.$)$

Compute the direct labor rate and efficiency variances and classify each as favorable or unfavorable. $($Do not round intermediate calculations.$)$