7 Direct materials price and usage variances Lo5 Wheeler Corporation produces and sells special eyeglass straps for sporting enthusiasts. In 2011, the company budgeted for production and sales of 1200 straps. However, the company produced and sold just 1100 straps. Each strap has a standard requiring one metre of material at a budgeted cost of $1.50 per metre and two hours of assembly time at a cost of $12 per hour. Actual costs for the production of 1100 items were $1435.50 for materials (990 metres at $1.45 per metre) and $29 161 for labour (2420 hours at $12.05 per hour) Required a Calculate the direct material price variance. b Calculate the direct material usage variance. 8 Labour rate and efficiency variances LO6 Refer to the information in question 5 above. Required a Calculate the direct labour rate variance b Calculate the direct labour efficiency variance