8.5 Use the following standard cost card for 1 gallon of ice cream to answer the questions.

Actual direct costs incurred to make 50 gallons of ice cream:

• 275 quarts of cream at $1.05 per quart

• 832 ounces of sugar at $0.075 per ounce

• 165 minutes of labor at $37 per hour All materials used were bought during the current period.

A. Compute the material and labor variances.

B. Comment on the results and possible causes of the variances.