Exercise 10-7 (Algo) Direct Materials Variances [LO10-1] 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: Direct materials Direct labor Standard Quantity or Hours 6.70 pounds 0.50 hours Standard Price or Rate Standard Cost $ 2.50 per pound $12.50 per hour $16.75 $ 6.25 During the most recent month, the following activity was recorded: a. Thirteen thousand pounds of material were purchased at a cost of $2.40 per pound. b. The company produced only 1,300 units, using 11,700 pounds of material. (The rest of the material purchased remained in raw materials inventory.) c. 750 hours of direct labor time were recorded at a total labor cost of $9,000. Required: