P15.1 (Material Variances) Creature Comforts makes beds for cat and dogs. The beds are made from flannel fabric and cotton stuffing. In June, the company purchased 1,000 metres of flannel at a price of $5 per metre and 700 kg of cotton stuffing at a price of $2 per kg. During June, 750 kg of cotton and 975 metres of flannel were used in the production of 390 beds (190 dog beds and 200 cat beds). Each type of bed requires the following: Dog Bed Cat Bed Metres of flannel 3 1.5 Kg of cotton 2 1.5 Price of flannel $5 $5 Price of cotton $2 $2 Determine the materials price and efficiency variances for the company. P15.2 (Labour Variances) Connors Custom Kitchens manufactures a standard-sized kitchen island that is used in many of its custom kitchens. The island is a 1.5 metre by 1 metre cabinet. Standard hours to produce the cabinet are 8 direct labour hours at a standard rate of $22 per hour. During the month of January, Connors made 500 cabinets and paid its carpenters $92,000 (using an average pay rate of $23 per hour). a. Calculate the labour variances. b. Cite potential reasons for these variances