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 6.0 millilitres 0.2 hours Standard Price or Rate $ 0.25 per millilitres $ 12.00 per hour Standard Cost $ 1.50 $ 2.40 Direct materials Direct labour During the most recent month, the following activity was recorded: a. 20,000 millilitres of material was purchased at a cost of $0.20 per millilitre. b. The company produced only 2,000 bottles, using 16,000 millilitres of material. (The rest of the material purchased remained in raw materials inventory.) c. 625 hours of direct labour time was recorded at a total labour cost of $7,500. 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 (.e., zero variance).) $ 1,000 F Materials price variance Materials quantity variance