The following information describes the production activities of mercer manufacturing for the yearactual direct materials used 30,000 lbs. at $5.15 per 1bactual direct labor used 9,150 hours for a total of $186, 660actual units produced 54,120budgeted standards for each unit produced are 0.50 pounds of direct material at $5.10 per pound and 10 minutes at $21.40 per houraq =actual quantitysq= standard quantityap =actual pricesp= standard priceah =actual hourssh= standard hoursar= actual ratesr =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.

Kiona co. set up a petty cash fund for payments of small amounts. the following transactions involving the petty cash fund occurred in may (the last month of the company's fiscal year). may 1 prepared a company check for $350 to establish the petty cash fund. 15 prepared a company check to replenish the fund for the following expenditures made since may 1. a. paid $109.20 for janitorial services. b. paid $89.15 for miscellaneous expenses. c. paid postage expenses of $60.90. d. paid $80.01 to the county gazette (the local newspaper) for an advertisement. e. counted $26.84 remaining in the petty cashbox. 16 prepared a company check for $200 to increase the fund to $550. 31 the petty cashier reports that $380.27 cash remains in the fund. a company check is drawn to replenish the fund for the following expenditures made since may 15. f. paid postage expenses of $59.10. g. reimbursed the office manager for business mileage, $47.05. h. paid $48.58 to deliver merchandise to a customer, terms fob destination. 31 the company decides that the may 16 increase in the fund was too large. it reduces the fund by $50, leaving a total of $500.