=+11-29 KK Price and efficiency variances, journal entries OBJECTIVE 4 Whangaratta Ltd manufactures ceramic bowls. It has set up the following standards per finished unit for direct materials and direct manufacturing labour:

Direct materials: 6.5 kg at $2.75 per kg $17.875 Direct manufacturing labour: 1.2 hours at $25.50 per hour 30.60 The number of finished units budgeted for January was 5000; 4550 units were actually produced.

Actual results in January were:

Direct materials: 32 760 kg used Direct manufacturing labour: 5600 hours $154 000 Assume that there was no beginning inventory of either direct materials or finished units.

During the month, materials purchases amounted to 35000 kg, at a total cost of $108500. Price variances are isolated upon purchase. Efficiency variances are isolated at the time of usage.

Required 1 Calculate the January price and efficiency variances of direct materials and direct manufacturing labour.