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Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (15 1bs. @ $5 per 1b.) $75 Direct labor (3 hrs. @ $15 per hr.) During June the company Incurred the following actual costs to produce 9.000 units. Direct materials (137,700 lbs. @ $4.70 per 1b.) $647,190 Direct labor (30,500 hrs. @ $15.15 per hr.). 462,075 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. (Indicate the effect of each variance by selecting for favorable. unfavorable, and no variance.) (2) Compute the direct labor rate variance and the direct labor efficiency variance. (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. Required 1 Required 2 Compute the direct materials price and quantity variances. Indicate whether each variance is favorable or unfavorable. Actual Cost Standard Cost AQ X AF AQ SP SQ SF X x 0 0 Direct materials price variance 0 Favorable Direct materials O Unfavorable Total direct materials variance Favorable Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product It manufactures. Direct materials (15 lbs. @ $5 per 1b.) $75 Direct labor (] hrs. @ $15 per hr.) During June the company Incurred the following actual costs to produce 9.000 units. Direct materials (137,700 lbs. @ $4.70 per 1b.) $647,190 Direct labor (30,500 hrs. @ $15.15 per hr.). 462,075 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. (Indicate the effect of each variance by selecting for favorable. unfavorable, and no variance.) (2) Compute the direct labor rate variance and the direct labor efficiency variance. (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. Required 1 Required 2 Compute the direct labor race variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable. Actual Cost Standard Cost AH AR AH SR SH SR $ 0 Direct labor rate variance O Unfavorable Direct labor efficiency variance D Unfavorable Total direct labor variance Unfavorable