Solly Corporation produces a product for national distribution. Standards for the product are: Materials: 12 ounces per unit at 604 per ounce. Labor: 2 hours per unit at $8 per hour. During the month of December, the company expected to produce 1,100 units and actually produced 1,000 units. Information for the month follows: Materials: 14,000 ounces purchased and used at a total cost of $7,700. Labor: 2,500 hours worked at a total cost of $20,625. 1. Materials Price Var. - Quantity Var. = spending var. = z. Labor Rate Var. = Efficiency var. = Spending Var = keys: Materials P. Var = 7007 Q var = 1,200 u Spending Var. = 500u. Labor Rate Var. = 625 u Efficiency Var = 4,000 u spending var. = 4,625