Exercise 10-10 Material Variances [LO2] The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below: Standard Quantity or Hours 02:06:20 Direct materials Direct labour 7.0 millilitres 8.2 hours eBook Standard Price or Rate: Standard Cost $ 0.32 per millilitre. $12.00 per hour $2.24 $2.40 Print eferences During the most recent month, the following activity was recorded! a. 29,000 millilitres of material was purchased at a cost of $0.27 per millilitre. b. All of the material was used to produce 2,000 bottles of Clean-All. c. 725 hours of direct labour time was recorded at a total labour cost of $8.700. Assume that instead of producing 3,780 bottles of Clean-All during the month, the company produced only 2,000 bottles, using 25,000 millilitres of material. (The rest of the material purchased remained in raw materials inventory.) Required: Compute the direct materials price and quantity variances for the month: (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Materials price variance Materials quantity variance $ 1,450