E9-7 (Algo) Calculating Direct Material and Labor Variances [LO 9-3, 9-4] Betty's Bakery has the following standard cost sheet for one unit of its most popular cake: SQ Direct materials 1.2 pounds Direct labor 0.8 hours SP $ 1.50 per pound $12.00 per hour During the month of May, the company made 1,000 cakes and incurred the following actual costs. Direct materials purchased and used (1,540 pounds) $2,002 Direct labor (1,060 hours) $12,190 Required: 1. Calculate the direct materials price variance. 2. Calculate the direct materials quantity variance. 3. Calculate the direct materials variance. 4 Calculate the direct labor rate variance 4. Calculate the direct labor rate variance. 5. Calculate the direct labor efficiency variance. 6. Calculate the direct labor spending variance. (For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) 1 Direct materiale price variance 1. Direct materials price variance 2. Direct materials quantity variance 3. Total direct materials spending variance 4. Direct labor rate variance 5. Direct labor efficiency variance 6. Total direct labor spending variance