AA Co uses standard costing for beer production. The following standards are for the barley used for beer production in 2014: AQ(SC-AC) SC(SQ-AQ) Standard barley cost per kilogram $1.00 Standard kilograms used per hectolitre (100 litres) finished good 50 kg During 2014, 82,000 hectolitres of beer was produced using 4,150,000 kilograms of barley. The actual cost for barley was $0.95.

Calculate the following items regarding barley costs and usage for AA Co for 2014:

a) efficiency variance

b) cost variance