Gadget Company has established the following standards for their product Direct materials: 3.6 grams per unit at $3.50 per gram Actual operating results last year were as follows: Actual number of units produced 35 000 Budget number of units produced 36,000 Material purchased 129.000 grams $3.80/gram $490,200 There were 1.250 grams of material in inventory at the end of the year (there was no opening inventory) Required: Calculate the direct material price and quantity variances. Show your work and label your variances with the name of the variance and favourable (F) or unfavourable (U) (7 marks)