3. Geo Company produces a perfume called Gravity. The direct materials and direct labor standards for one bottle of Gravity are given below: Standard Quantity or Standard Hours Standard Price or Standard Rate Standard Cost Direct Material Direct Labor 7.2 ounces 0.4 hours $2.5 per ounce $18 $10 per hour $4 During the most recent month, the following activity was recorded: a. Twenty thousand ounces of material were purchased at a cost of $2.40 per ounce. b. All of the material was used to produce 3,500 bottles of Gravity. c. Nine hundred hours of direct labor time were recorded at a total labor cost of $9,000. Requirement: i. Compute the materials price and quantity variances ii. Compute the labor rate and efficiency variances [6+6=12]