Required Information [The following information applies to the questions displayed below.] Utease Corporation has several production plants nationwide. A newly opened plant In Dubuque produces and sells one product. The plant is treated, for responsibility accounting purposes, as a profit center. The unit standard costs for a production unit, with overhead applied based on direct labor hours, are as follows. Manufacturing costs (per unit based on expected activity of 26,000 units or 57,200 direct labor hours): Direct materials (3.3 pounds at $20) Direct labor (2.2 hours at $60) Variable overhead (2.2 hours at $20) Fixed overhead (2.2 hours at $30) Standard cost per unit Budgeted selling and administrative costs: Variable Fixed $ 66.00 132.00 44.00 66.00 $ 308.00 $ 6 per unit $1,200,000 Expected sales activity: 22,000 units at $450 per unit Desired ending inventories: 16% of sales Assume this is the first year of operations for the Dubuque plant. During the year, the company had the following activity. Units produced Units sold Unit selling price Direct labor hours worked Direct labor costs. Direct materials purchased Direct materials costs. Direct materials used Actual fixed overhead Actual variable overhead Actual selling and administrative costs $ 25,000 23,500 445 54,500 $ 3,324,500 86,500 pounds $ 1,730,000 $ 86,500 pounds 900,000 $ 1,044,000 $ 2,032,000 In addition, all over- or underapplied overhead and all product cost varlances are adjusted to cost of goods sold. d. Find the direct materials variances (materials price variance and quantity variance). (Indicate the effect of each varlance by selecting Favorable, Unfavorable, and "None" for no effect (l.e., zero varlance).) Direct Material Variances Material quantity variance Material price variance