A company makes table lamps, for which the following standards have been developed:

	Standard Inputs Expected for Each Unit of Output	Standard Price Expected per Unit of Output
Direct materials	20 kilograms	$2 per kilogram
Direct labour	6 hours	$8 per hour

During January, production of 100 lamps was expected, but 110 lamps were actually completed. The company had switched to a new supplier and was eager to see the impact of this new supplier for raw materials. During the month, direct materials purchased and used were 2,100 kilograms at an actual price of $2.20 per kilogram. Direct labour cost for the month was $5,310, and the actual pay per hour was $9.00.

Required:

a) Compute the direct material price and efficiency variance. Include if these were favourable or unfavourable?

b) Compute the direct labour rate and efficiency variance. Include if these were favourable or unfavourable?

c) Comment on your results?