Problem 3 Required: 1. Compute the direct materials price and quantity variances. 2. Compute the direct labor rate and efficiency variances. Sharp Company has established the following standards for one of its products: Standard Quantity or Hours Standard Price or Rate Direct Materials 3.25 ounces $2.00 per ounce Direct Labor .20 hours $14.00 per hour Actual Information: a. 20,000 ounces of material were purchased at a cost of $2.15 per ounce. b. All of the material purchased was used to produce 6,000 units. C. 1,000 hours of direct labor were recorded at a total cost of $13,750. * AP-SP AQ * MPV AQ X(SP-AP) SPY (AQ-SO) MQV (SQ-AQ)X-SP = AHX (AR-SR) LRV=AH-X(SR-AR) = SRY (H-SH) LEV=SH-AH-X-SR-