Problem #3 - Materials and Labor Variances Babson Company produces a cleaning product called Zoom. The direct materials and direct labor standards for on unit of Zoom are as follows: Direct Materials........ Direct Labor....... 5 pounds @ $3 per pound .17 hours @ $14 per hour During the month of June, Babson purchased and used 20,000 pounds of material at a cost of $3.25 per pound. Babson produced 5,000 units of Zoom. A total of 800 hours of direct labor time was recorded at a total labor cost of $11,000. 47. What is the materials price variance? 48. What is the materials quantity variance? Make sure to label 49. What is the labor rate variance? each variance as favorable (F) or unfavorable (U) 50. What is the labor efficiency variance