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Exercise 21-15 Direct materials and direct labor variances LO P3 The following describes production activities of Mercer Manufacturing for the year Actual direct waterials used Actual direct labor used Actual units produced 36,000 lbs. at $6.05 per lb. 11,189 hours for a total of $233,100 66.030 Budgeted standards for each unit produced are 0.50 pound of direct material at $6.00 per pound and 10 minutes of direct labor at $22.00 per hour 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 and classify each as favorable or unfavorable. (Indicate the effect of each varlance by selecting for favorable, unfavorable, and no variance. Round "Cost per unit answers to 2 decimal places.) (2) Compute the direct labor rate and efficiency variances and classify each as favorable or unfavorable. (Indicate the effect of coch varlance 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 and classify each as favorable or unfavorable. (Do not round intermediate cakulations.) Actual Cost Standard Cost 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 and classify each as favorable or unfavorable. (Indicate the effect of coch varlance by selecting for favorable, unfavorable, and no varlance. Round "Cost per unit" answers to 2 decimal places.) (2) Compute the direct labor rate and efficiency variances and classify each as favorable or unfavorable. (Indicate the effect of each varlance 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 rate and efficiency variances and classify each as favorable or unfavorable. (Do not round intermediate calculations.) Actual Cost Standard Cost

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