McKenzie Ltd produces chairs and employs three workers. The staff normally work 40 hours per week for €12 per hour (including social security). It takes four hours for a worker to produce a cabinet: it sells for €80 and contains two square meters of timber, which costs €6.00 per square meter. Heating, rent, and local taxes normally average €240 per week. One of the workers is ill and is away from work for one week. He gets no pay. During this week, the other two workers work six hours overtime each for which they are paid at “time and a half” (full payment for an hour plus payment for half an hour). They produce 25 cabinets between them, which are sold for €84 each. They use 55 square meters of material at a price of €7.00 per square meter. The weather is extremely cold that week and additional heating is required for the longer hours worked, so overhead costs increase to €280.

Required

Prepare the budgeted, flexible, and actual performance for the week and compute the following variances:
1. Direct material price variance
2. Material efficiency variance
3. Direct labor price variance
4. Manufacturing labor efficiency variance