Morry Games developed a new play station called AWESOME Morry Games has a standard cost system to help control its costs The following standards have been established for AWESOME Direct materials 15 grams per AWESOME Standard direct material cost per AWESOME is $10 Direct labour 1 2 hours per AWESOME Standard cost of direct labour is $14 40 per AWESOME During May the company produced 9,000 AWESOME units Production data for May are Direct materials 165,000 grams were purchased at a cost of $104,000 20,000 grams of this was still in inventory at the end of the month Direct labour 11,400 direct labour hours were worked at a cost of $142,500 Required Calculate Direct materials price and quantity variances Calculate Direct labour price and quantity variances Are the variances computed in (a) and (b) linked Provide a brief commentary on the variances computed above, including explanations regarding the price and the quantity variances for Direct materials, and the price and the quantity variances for Direct labours

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Morry Games developed a new play station called AWESOME. Morry Games has a standard cost system to help control its costs. The following standards have

Morry Games developed a new play station called AWESOME. Morry Games has a standard cost system to help control its costs. The following standards have been established for AWESOME.

Direct materials 15 grams per AWESOME.
Standard direct material cost per AWESOME is $10.
Direct labour 1.2 hours per AWESOME.
Standard cost of direct labour is $14.40 per AWESOME.
During May the company produced 9,000 AWESOME units.

Production data for May are:

Direct materials: 165,000 grams were purchased at a cost of $104,000; 20,000 grams of this was still in inventory at the end of the month.
Direct labour: 11,400 direct labour hours were worked at a cost of $142,500.

Required:

Calculate Direct materials price and quantity variances.
Calculate Direct labour price and quantity variances.
Are the variances computed in (a) and (b) linked? Provide a brief commentary on the variances computed above, including explanations regarding the price and the quantity variances for Direct materials, and the price and the quantity variances for Direct labours.