of ECT LO Ch 08 Ex Saved Help Save & Exit Check my Exercise 8-15 Direct materials and direct labor variances LO P2 The following Information describes production activities of Mercer Manufacturing for the year Actual direct materials used Actual direct labor used Actual units produced 25,000 lbs. at $4.60 per 1b. 6,050 hours for a total of $120.395 36,000 for each unit produced are 0.50 pounds of direct material at $4.55 per pound and 10 minutes of direct labor at Budgeted standards $20.90 per hour AQ Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price AH Actual Hours SH Standard Hours AR Actual Rate SR Standard Rate (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. Complete this question by entering your answers in the tabs below