Barberry, Inc., manufactures a product called Fruta. The company uses a standard cost system and has established the following standards for one unit of Fruta:

	Standard Quantity	Standard Price or Rate			Standard Cost
Direct materials	1.50 pounds	$	7.00	per pound	$	10.50
Direct labor	0.40 hours	$	14.00	per hour		5.60
Variable manufacturing overhead	0.40 hours	$	2.50	per hour		1.00
					$	17.10

During June, the company recorded this activity related to production of Fruta:

a.	The company produced 3,300 units during June.
b.	A total of 8,400 pounds of material were purchased at a cost of $49,980.
c.	There was no beginning inventory of materials; however, at the end of the month, 2,200 pounds of material remained in ending inventory.
d.	The company employs 10 persons to work on the production of Fruta. During June, they worked an average of 100 hours at an average rate of $14.50 per hour.
e.	Variable manufacturing overhead is assigned to Fruta on the basis of direct labor-hours. Variable manufacturing overhead costs during June totaled $2,300.

The company's management is anxious to determine the efficiency of Fruta production activities.

Required:

1.	For direct materials:

a.	Compute the price and quantity variances.(Round your "price per pound" answers to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)