Exercise 10A-1 Mix and Yield Variances [LO8] The Grayson Company uses standard costs to account for its production of a specialty cleaning product called Green Clean. The standard cost of materials and direct labour to produce one bottle of Green Clean is as follows: Material A Material B Direct labour 1.5 litres at S0.80 per litre 0.5 litres at S2.00 per litre 0.25 hours at $10.00 per hour S 1.20 1.00 2.50 Both material A and material B are added at the start of the process. Production data for June 2016 are as follows: a. Beginning work in process. 5.000 units, 25% complete b. Started during June, 18,000 units c. Ending work in process. 6,000 units, 60% complete d. No units were spoiled e. 28,000 litres of material A was issued to production f. 12,000 litres of material B was used during June g. Direct labour worked totalled 4,800 hours at a cost of $50,000 for the month Required: Determine all of the material and labour variances possible from the preceding data for the month of June (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Material Variances Mix Variance A Mix Variance B Yield VarianceA Yield VarianceB Labour Variances Rate Variance Efficiency Variance Price Variance Quantity Variance