Cootamundra Industries (CI), developed standard costs for direct material and direct labour. In 2018, CI estimated the following standard costs for one of their major products, the 30-litre heavy-duty plastic container.

Budgeted quantity. Budgeted price

Direct materials. 0.20 kg $26 per kg

Direct labour 0.10 hours $14 per hour

During July, CI produced and sold 10 000 containers using 2200 kg of direct materials at an average cost per kg of $24 and 1050 direct manufacturing labour hours at an average wage of $14.75 per hour

Required:

1. a) July's direct material price variance (2 marks)

2. b) July's direct material efficiency variance (2 marks)

3. c) July's direct manufacturing labour price variance (2 marks)

d) July's direct manufacturing labour efficiency variance (2 mark)

Note: Denote the variances as favourable (F) or unfavourable (U), as the case may be.