Finnish, Inc., manufactures T-shirts. It sells its T-shirts to retailers in lots of one dozen. Finnishs May 2020 static budget and actual results for direct inputs are as follows:

Static Budget
Number of t-shirt lots ( 1 lot = 1 dozen)	400
Per lot of t-shirts
Direct Material	14 meters at $1.70 per meter= $23.80
Direct manufacturing Labour	1.6 hours at $8.10 per hour = $12.96
Actual Results
Number of t-shirt lots sold	450
Total Direct Inputs
Direct Material	6.840 meters at $1.95 per meter= $13.338
Direct manufacturing Labour	675 hours at $8.20 per hour = $5.535

The production manager discusses the sources of the variances: A new kind of material, which led to faster cutting and sewing was purchased in May. However, the workers used more material than usual as they learned to work with it. For now, the standards are fine. Required:

a) Calculate the direct materials and direct manufacturing labor price and efficiency variances in May 2020. (10 pts)

b) What is the total flexible-budget variance for both inputs (direct materials and direct manufacturing labor) combined? (5 pts)

c) Beatrice Mass, the CEO, is concerned about the input variances. But she likes the quality and feel of the new material and agrees to use it for one more year. In May 2021, Finnish again produces 450 lots of T-shirts. Relative to May 2020, 4% less direct material is used, direct material price is down 4%, and 2% less direct manufacturing labor is used. Labor price has remained the same as in May 2020. Calculate the direct materials and direct manufacturing labor price and efficiency variances in May 2021. (20 pts)