Elles Treats produces high-quality dog food distributed only through veterinary offices. To ensure that the food is of the highest quality and has taste appeal, Belle has a rigorous inspection process. For quality-control purposes, Belle has a standard based on the number of kilograms inspected per hour and the number of kilograms that pass or fail the inspection.

Belle expects that for every 10,000 kilograms of food produced, 1,000 kilograms of food will be inspected. Inspection of 1000 kilograms of dog food should take 1 hour. Belle also expects that 2% of the food inspected will fail the inspection. During the month of May, Belle produced 2,250,000 kilograms of food and inspected 200,000 kilograms of food in 210 hours. Of the 200,000 kilograms of food inspected,3,500 kilograms of food failed to pass the inspection.

1. Calculate two variances that help determine whether the time spent on inspections was more or less than expected. (Follow a format like the one used for the variable overhead rate and efficiency variances, but without prices.)

2. Calculate two variances that can be used to evaluate the percentage of the food that fails the inspection.