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 840 cakes and incurred the following actual costs. Direct materials purchased and used (1,220 pounds) $1,586 Direct labor (900 hours) $10,350 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).)