Gadget Company has established the following standards for their product Direct materials: 3.5 metres per unit at $5.00 per metre Actual operating results last year were as follows: Actual number of units produced Budget number of units produced Material purchased 130.000 metres, $4.80/metre 36,000 35,000 $624,000 There were 1,000 metres 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)