7 Direct materials price and usage variances Production Plus Corporation produces and sells special eyeglass straps for employees working in factories. In 2018, 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 $3 per metre and two hours of assembly time at a cost of $24 per hour. Actual costs for the production of 1100 items were $2871 for materials (990 metres at $2.90 per metre) and $58 322 for labour (2420 hours at $24.10 per hour). REQUIRED a Calculate the direct material price variance. b Calculate the direct material usage variance. 8 Labour rate and efficiency variances Refer to the information in question 7 above. REQUIRED a Calculate the direct labour rate variance. b Calculate the direct labour efficiency variance