Question 3:

Chemistry, Inc., has set the following standards for direct materials and direct labor for each 20-pound bag of Kill-the-Weed:

	Per Bag
Direct materials: 25 pounds of XL-2000 @ $0.08/lb. =	$	2.00
Direct labor: 0.05 hour @ $32.00/hr. =	$	1.60

The company manufactured 100,000 bags of Kill-the-Weed in December and used 2,700,000 pounds of XL-2000 and 5,200 direct labor hours. During the month, the company purchased 3,000,000 lbs. of XL-200 at $0.075 per pound, and incurred a total payroll of $182,000 for direct labor. The company records purchases at standard cost and therefore recognizes material price variances at point of purchase. Required: Compute the price and usage variances for direct materials, and the rate and efficiency variances for direct labor for the month of December. Round all four answers to nearest dollar.

Please show work and explain. Will rate.