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: Direct materials Direct labor SQ SP 1.2 pounds $ 1.50 per pound 0.8 hours $12.00 per hour During the month of May, the company made 860 cakes and incurred the following actual costs. Direct materials purchased and used (1,260 pounds) $1,638 Direct labor (920 hours) $10,580 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. 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).)