Help Save & E Submit Check my work Reed Corp has set the following standard direct materials and direct labor costs per unit for the product it manufactures Direct materials (15 lbs. 54 per lb.) Direct labor (2 hrs 514 per hr.) $60 28 During June the company incurred the following actual costs to produce 8,000 units Direct materials (122,400 lbs 53.84 per lb.) Direct labor (19,900 hs.114.10 per hr). $465,120 280, AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate AQ Actual Quantity SQ = Standard Quantity AP-Actual Price SP Standard Price selecting for favorable, (1) Compute the direct materials price and quantity variances (indicate the effect of each variance