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 Budget number of units produced Material purchased 129,000 grams $3.80/gram 35.000 36.000 $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)