Question 1 {15 points] Smith Industries uses a cost system that carries direct materials inventory at a standard cost. Standard I W Quantity Price Direct materials 5 pounds 52.60 per pound Dhct labor 1.25 hours $12.00 per hour Smith Industries made 3,000 baskets in July:r and used 15,500 pounds of material to make these units. Smith Industries used 15,500 pounds of material and paid $39.3?0 fer the material. Smith Industries put 4,000 hours to make the units and paid $10 per heuc Calculate material and labor variances