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 1.2 pounds @.8 hours $ 1.50 per pound $12.00 per hour During the month of May, the company made 740 cakes and incurred the following actual costs Direct materials purchased and used (1,040 pounds) $1352 Direct labor (800 hours) $9 200 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 "P" for favorable. "U" for unfavorable, and "None" for no effect (i... zero variance).) 1 Direct materials price variance 2 Direct materials quantity variance 3 Total direct materials opending variance 4. Direct labor rate variance 5 Direct labor officiency variance 16. Total direct labor spending variance