The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below:

	Standard Quantity or Hours		Standard Price or Rate			Standard Cost
Direct materials	7.0	millilitres	$	0.31	per millilitre	$	2.17
Direct labour	0.3	hours	$	12.00	per hour	$	3.60

During the most recent month, the following activity was recorded:
a.	23,000 millilitres of material was purchased at a cost of $0.26 per millilitre.
b.	All of the material was used to produce 3,000 bottles of Clean-All.
c.	600 hours of direct labour time was recorded at a total labour cost of $7,200.

	Standard Quantity or Hours		Standard Price or Rate			Standard Cost
Direct materials	7.0	millilitres	$	0.31	per millilitre	$	2.17
Direct labour	0.3	hours	$	12.00	per hour	$	3.60

Required:

1.

Compute the direct materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)

Materials price variance	$1,150	F/U
Materials quantity variance	$620	U/F

Labour rate variance	$0	None
Labour efficiency variance	$3,600	U/F

Unfavorable or favorable?