Mr. Jones has established some standards in respect of one of the companys products and now wants you to prepare the requested reports.

Direct Materials 6 pounds at $ 2.50 per pound$ 15.00

Direct Labour 3.1 hours at a rate of $ 12.00 per hour$ 37.20

During the month of January, the company produces 250 units and incurs the following costs:

Direct materials purchased and used 1,600 pounds$ 4,192

Direct Labour 760 hours$ 8,740

You are Required to:

a) Compute the Materials Price Variance for the month2 Marks

b) Compute the Materials Quantity Variance for the month2 Marks

c) Compute the Labour Price Variance for the month2 Marks

d) Compute the Labour Quantity Variance for the month