Exercise 10B-2 Direct Materials and Direct Labor Variances; Journal Entries [LO10-1, LO10-2, LO10-5] Genola Fashions began production of a new product on June 1. The company uses a standard cost stem and has established the following standards for one unit ofthe new product Standard Quantity Standard Price Standard Cost or Hours or Rate $6.30 per yard $28.35 Direct materials 4.5 yards Direct labor 0.3 hours $10.60 per hour $3.18 During June, the following activity was recorded for the new product a. Purchasing acquired 7,200 yards of material at a cost of$6.00 per yard. b. Production used 6,200 yards ofthe material to manufacture 1,300 units of the newproduct. c. Production reported that 885 direct labor-hours were worked on the new product at a cost of $9,735. Required: 1. For direct materials a. Compute the materials price and quantity variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Materials price variance Materials quantity