Exercise $8-12($Algo$)$ Direct materials and direct labor variances LO P$3$

Camila 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 $(3$ hours @ $$15$ per hour$)45$

During June the company incurred the following actual costs to produce $8,900$ units.

Direct materials $(135,700$ pounds @ $$3\mathrm{.}75$ per pound$)$$ $508,875$Direct labor $(30,200$ hours @ $$15\mathrm{.}10$ per hour$)456,020$

AR $=$ Actual Rate

SR $=$ Standard Rate

AQ $=$ Actual Quantity

SQ $=$ Standard Quantity

AP $=$ Actual Price

SP $=$ Standard Price

AH $=$ Actual Hours

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

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