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Bobbles Outdoor Dog Socks, Ltd. (BODS) makes socks for dogs. Dog socks provide superior grip and are ideal for indoor and outdoor wear, providing traction and protection for dogs paws. They protect dog paws from the cold, slippery surfaces, hot pavement, and debris.

Each set of four socks sells for an average of $40. The standard cost of labour for each set is $10 and the standard labour time for each set is half of an hour. In the last quarter, BODS had budgeted production of 47,500 sets, although actual production was 51,500 sets in order to meet demand. 25,500 hours were used to complete the work and there was no idle time. The total labour cost for the quarter was $536,000.

The standard amount of cotton to make one set of socks is 0.1kg. The estimated cost of cotton at the beginning of the quarter was $8. The actual cost of cotton on average during the quarter was $7.80 and the actual amount of cotton used was 5,200kg. For the purposes of this exercise, you can assume that BODS runs a perfectly efficient JIT stock management system.

At the beginning of the last quarter, the design of the socks was changed slightly. The new design required workers to sew BODS logo into every sock made and the estimated time to do this was approximately 2 minutes for each set. However, no-one told the accountant responsible for updating standard costs that the standard time per set of socks needed to be changed. Similarly, although all workers were given a 2% pay rise at the beginning of the last quarter, the accountant was not told about this either. Consequently, the standard was not updated to reflect these changes. When overtime is required, workers are paid 25% more than their usual hourly rate.

Required

(For any computational element, please round to nearest whole number)

1. Calculate the total labour rate and total labour efficiency variances for the last quarter.

2. Calculate the total materials price and total materials quantity variances for the last quarter.

3. Based on the information above, assess the performance of the production manager for the last quarter.

4. Based on the information above, assess the performance of the purchasing manager for the last quarter.