Direct Material and Labour Variance: Manufacturer

During September, Wonderland Ltd material purchases amount to 7,000 kilograms at a price of $8.00 per kg. Actual costs incurred in the production of 2,700 units were as follows:

Direct labour $118,611 $19.10 per hour

Direct material $51,000 $8.00 per kilogram

The standard for one unit of product is as follows:

Quantity Price/Rate

Direct Labour 2.5 hours per unit $21 per hour

Direct material 2.5 kilograms per unit $7 per kilogram

Required: Calculate the following variance, indicating whether each variance is favorable or unfavorable:

(a) Direct material price variance.

(b) Direct material quantity variance.

(c) Direct labour efficiency variance.

(d) Direct labour rate variance.