Lido Company's standard and actual costs per unit for the most recent period are given below:

1.2,500 metres of material were purchased at 1.45 per meter and 2,000 metres were used.

2.1,420 hours of labour were assigned to produce 950 units. Direct labour actual hourly rate was 16.65.

3.Actual variable manufacturing overhead amounted to 3.70 per labour hour. Lido uses direct labour hour as the cost driver for overhead application. Total actual fixed overhead amounted to 11,500 for the period.

Lido uses the following manufacturing standards per unit:

a)Direct material: 2 metres at 1.56 per metre

b)Direct labour: 1.25 hours at 16 per hour

c)MHO-Variable: 1.25 hours at 3.45 per DLH

d)Fixed: 1.25 hours at 10 based on capacity to produce 1,000 units.

1.From the above information compute the variances necessary to complete the variance report. In the analysis section of the report, identify any exceptions and make recommendations based on your analysis.

2.Provide journal entries for direct material and direct labour.