Problem 2 Material and Labour Variances The direct materials and direct labour standards for one bottle of Whisper perfume, a product of the Farante Company, are given below: Standard Quantity Standard Price or Hours or Rate Standard Cost Direct materials Direct labour 7.2 grams 0.4 hours $2.50 per gram $10.00 per hour $18.00 $4.00 During the most recent month, the following activity was recorded: a. Twenty thousand grams of material were purchased at a cost of $2.40 per gram. b. All of the material was used to produce 2,500 bottles of Whisper. c. Nine hundred hours of direct labour time were recorded at a total labour cost of $10,800. Required: 1. Compute the direct materials price and quantity variances for the month. 2. Compute the direct labour rate and efficiency variances for the month