mework Saved xercise 10-7 (Algo) Direct Materials Variances [LO10-1] uron Company produces a commercial cleaning compound known as Zoom. The mit of Zoom are given below: Direct materials Direct labor Standard Quantity or Hours Standard Price or Rate Standard 5.50 pounds 0.50 hours $2.50 per pound $6.50 per hour Cost $13.75 $ 3.25 During the most recent month, the following activity was recorded: Ten thousand six hundred pounds of material were purchased at a cost of $2.40 The company produced only 1,060 units, using 9,540 pounds of material. (The res materials inventory.) c. 630 hours of direct labor time were recorded at a total labor cost of $7,560 Required: Compute the materials price and quantity variances for the month. (Indicate the effe favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input intermediate calculations.) < Prev 2 of 5