The following information describes production activities of mercer manufacturing for the year. actual direct materials used 24,000 lbs. at $4.45 per lb. actual direct labor used 6,505 hours for a total of $128,799 actual units produced 36,030 ah = actual hours sh = standard hours ar = actual rate sr = standard rate aq = actual quantity sq = standard quantity ap = actual price sp = standard price budgeted standards for each unit produced are 0.50 pounds of direct material at $4.40 per pound and 10 minutes of direct labor at $20.80 per hour.

(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.