12. Sur liquid Company produces a perfume called Zhim. The direct materials and direct labor standards for one bottle of Whim are given below:

	Standard Quantity or hours	Standard Price or Rate	Standard cost
Direct materials	8.2 ounces	$2.50 per ounce	$ 20.50
Direct Labor	0.4 hour	$9.00 per hour	3.60

During the most recent month, the following activity was recorded:

a. Twenty thousand ounces of material were purchased at a cost of $2.40 per ounce.

b. All of the material was used to produce 2,500 bottles of Zhim.

c. Nine hundred hours of direct labor time were recorded at a total labor cost of $10,800.

Instructions:

1. Compute the direct materials price and quantity variances for the month.

2. Compute the direct labor rate and efficiency variances for the month