Direct material and labour variances: manufacturer During January, Microchem Ltd produced 1000 units of a special product called Stylex, and the accounting records indicated the following: Direct material purchased 36000 kilograms @ $2.76 per kilogram Direct material used 19000 kilograms Direct labour 4200 hours @ $36 per hour Stylex has the following standard prime costs: $ 54.00 Direct material: 20 kilograms @ $2.70 per kilogram Direct labour hours: 4 hours @ $34 per hour Standard prime cost per unit 136.00 $190.00 Required: 1. Calculate the total standard direct material costs and direct labour costs for January 2. For the month of January, calculate the following variances, indicating whether each is favourable or unfavourable: (a) direct material price variance (b) direct material quantity variance (c) direct labour rate variance (d) direct labour efficiency variance