Exercise 11-2 Computing All Variances (LO3 - CC15, 17, 18; L04 - CC22, 23) Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labour standar unit of Zoom follow: Direct materials Direct labour Variable overhead Standard Quantity or Hours 4.10 kilograms 0.41 hour 0.41 hour Standard Price or Rate $2.10 per kilogram $8.00 per hour $1.30 per hour Standard Cost $ 8.61 3.28 0.53 The budgeted fixed overhead tost is $14,224 per month. The denominator activity level of the allocation base is 1,148 direct la hours. During the most recent month, the following activity was recorded: a. 9,900 kilograms of material were purchased at a cost of $2.20 per kilogram. b. All of the material purchased was used to produce 2,800 units of Zoom. C. A total of 770 hours of direct labour time was recorded at a total labour cost of 9,086. d. The variable overhead cost was $1,540, and the fixed overhead cost was $22,811. Required: 1. Compute the direct materials price and quantity variances for the month. (Indicate the effect of each variance by selecting favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Materials price variance Materials quantity variance 2. Compute the direct labour rate and efficiency variances for the month. (Indicate the effect of each variance by selec favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Labour rate variance Labour efficiency variance 3. Compute the variable overhead spending and efficiency variances for the month. (Indicate the effect of each variance "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Round "Efficiency variance" to 2 places.) Variable overhead spending variance Variable overhead efficiency variance