Canvas Monitor Corp. produces and sells a single product. Standards have been established for the product as follows: Direct Materials per unit 8 pounds @ $ 5.00 per pound Direct Labor per unit 2 hours@ 10.00 per hour Actual cost and usage figures for the past month follow: Units produced 1,500 Direct materials used 5,400 pounds Direct materials purchased. 6,000 pounds Cost of direct materials purchased $ 16,500 Direct labor employed 3,500 hours Cost of direct labor employed $ 38,000 Required: Compute the variances for the following. 1. The labor rate variance 2. The labor efficiency variance