Paulson Corporation manufactures tablecloths, which is its only product. The standards for tablecloths based on 500 tablecloths are as follows:

Standard direct materials cost per meter $11

Standard direct materials quantity per tablecloth (meters) 2

Standard direct labour cost per hour $15

Standard direct labour hours per tablecloth 1.5

Variable overhead per labour hour $3

Fixed overhead per labour hour (Budgeted total $15,000) $20

During the month of September, the company produced 1,000 tablecloths. Related production data for the month follows:

Actual meters of direct material purchased and used 2,200

Actual direct materials total cost $22,880

Actual direct labour hours 2,100

Actual direct labour total cost incurred $29,400

Actual variable overhead $6,000

Actual fixed overhead $16,000

Required:

For the month compute:

A. Direct materials price and materials usage variances.

B. Direct labour rate and efficiency variances.

C. Direct variable overhead spending and efficiency variances.

D. Explain why materials price and materials usage variances occurred. Do not just state the price or the quantity increased.