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28 29 Baron Ltd makes a commercial cleaning compound known as Loomp. 30 The direct materials and direct labour standards for one unit of Loomp follow Standard Standard Price or Quantity or Standard Cost Rate 31 hours 32 Direct materials 2.1 kg $5.50 per kg $11.55 33 Direct Labour 0.2 hour 12.00 per hour 2.40 34 35 During the most recent month, the following activity was recorded 36 37 a. 9,000 kg of materials were purchased at a cost of $5.20 per kg 38 b. All of the material purchased was used to produce 4,000 units of Loomp 39 C. A total of 750 hours of direct labour time was recorded at a total labour cost of $10,425 40 41 Required: 42 1. Compute the direct materials price and quantity variances for the month 43 and briefly state the reason 44 45 2. Compute the direct labour rate and efficiency variances for the month 46 and briefly state the reason 47