EXERCISE 8-7Material and Labor Variances (LO2, LO3) Sonne Company produces a perfume called Whim. The direct materials and direct labor standards for one bottle of Whim are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost $18 $4 $2.50 per ounce 7.2 ounces 0.4 hours $10.00 per hour During the most recent month, the following activity was recorded: Twenty thousand ounces of material were purchased at a cost of $2.40 per ounce. All of the material was used to produce 2,500 bottles of Whim. Nine hundred hours of direct labor time were recorded at a total labor cost of $10,800 a. b. c. Required: I. Compute the direct materials price and quantity variances for the month. 2. Compute the direct labor rate and efficiency variances for the month