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

Standard Quantity Standard Price Standard

or Hours or Rate Cost__

Direct materials 6.0 mL $0.20 per mL $1.20

Direct labour 0.2 hours $15.00 per hour $3.00

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

i. 20,000 millilitres of material was purchased at a cost of $0.25 per millilitre.

ii. All of the material was used to produce 3,000 bottles of Clean-All.

iii. 625 hours of direct labour time was recorded at a total labour cost of $10,000.

Required:

a) Compute the direct materials price and quantity variances for the month (5 marks).

b) Compute the direct labour rate and efficiency variances for the month (5 marks).