Exercise 10-6 (Algo) Direct Materials and Direct Labor Variances [LO10-1, LO10-2] Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 7.30 pounds $ 2.80 per pound $ 20.44 Direct labor 0.60 hours $ 9.00 per hour $ 5.40 During the most recent month, the following activity was recorded: 16,600.00 pounds of material were purchased at a cost of $2.50 per pound. All of the material purchased was used to produce 2,000 units of Zoom. 1,000 hours of direct labor time were recorded at a total labor cost of $12,000. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month.