1. Chilie Inc. showed the following standards to produce its product:

Direct Material (5 pounds, $3) = $15

Direct Labor (2 hours, $10) = $20

During October, the company incurred the following costs to produce 5500 units.

Direct Material (22,000 pounds at $2.50 per pound)

Direct Labor (13,750 hours at $11.00 per hour)

Compute all 6 variances:

Total Direct Material Variance, Price Variance, Quantity Variance

Total Direct Labor Variance, Rate Variance, Efficiency Variance.