Flexible Budgets & Variances

NELSON During January, Nelson Ltd produced 7800 valve units and the accounting records indicated the following: Direct Materials Purchased 25,000kg @ 2.60 per kg Direct Material Used 23,100kg

Direct Labour	40,100 hours @ $14.60 per hour
The valve has the following standard costs:
Direct Material: 3kg @ $2.50 per kg	$7.50

Direct Labour hours: 5 hours @ $15.00 per hour	$75.00
REQUIRED:
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