Anomelg solicitors employed Maggie to do their conveyancing work; she is treated as ‘direct labour’. They planned to pay her £30 per hour for 100 hours a month and expect her to complete 10 conveyances.

During April they paid her £2,400 for 84 hours work and she completed seven conveyances.

a Calculate and explain the direct labour cost variance.

b Calculate and explain the direct labour rate and efficiency variances.