EXERCISE 106 Direct Materials and Direct Labor Variances L010-1, L0102 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 Price Standard Quantity or Hours Standard Cost or Rate Direct materials 4.6 pounds $2.50 per pound $11.50 Direct labor 0.2 hours $18.00 per hour $3.60 During the most recent month, the following activity was recorded: a. Twenty thousand pounds of material were purchased at a cost of $2.35 per pound. b. All of the material purchased was used to produce 4,000 units of Zoom. c. 750 hours of direct labor time were recorded at a total labor cost of $14,925. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month