Question: The direct materials and direct labour standards for one bottle of Clean All spray cleaner are given below: During the most recent month, the following

 The direct materials and direct labour standards for one bottle of

The direct materials and direct labour standards for one bottle of Clean All spray cleaner are given below: During the most recent month, the following activity was recorded; a. 29.000 mililitres of material was purchased at a cost of $0.27 per millilitre. b. All of the material was used to produce 3.780 bottles of Clean-All. c. 725 hours of direct labour time was recorded at a total labour cost of $8.700. Assume that instead of producing 3.780 bottles of Clean.All during the month, the compary produced only 2000 botties, using 25,000 millititres of material. (The rest of the material purchased remained in raw materlals inventory. Requireat: Compute the clirect materials price and quantity variances for the month, (Indicate the effect of ench voriance by selecting "F" for fovoursble, "U" for unfavourable, and "None" for no effect (i.e., zero voriance).)

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