Reference no: EM132503804

Question - Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures.

Direct materials (16 lbs. @ $3 per 1b.) $48

Direct labor (3 hrs. @ $14 per hr.) 42

During June the company incurred the following actual costs to produce 8.800 units.

Direct materials (142,900 lbs. @ $2.80 per lb.) $400,120

Direct labor (31,100 hrs. @ $14.15 per hr.) 440,065

AH = Actual Hours

SH = Standard Hours

AR = Actual Rate

SR = Standard Rate

AQ = Actual Quantity

SQ = Standard Quantity

AP = Actual Price

SP = Standard Price

Required -

(1) Compute the direct materials price and quantity variances.

(2) Compute the direct labor rate variance and the direct labor efficiency variance.