RJM Enterprises is a manufacturer of consumer electronics products. The industry is very competitive, and RJM has seen its profits fall in recent years, including an operating loss of $18,389 last year. RJM was able to turn that around this year by aggressively cutting costs. The summarized financial results for RJM are shown below:

	Current Year				Prior Year
Gross sales:	$	939,890			$	1,328,690
Less variable costs
Direct materials		414,932				789,600
Direct labor		267,960				493,479
Total contribution margin	$	256,998			$	45,611
Fixed cost		33,509				64,000
Operating income	$	223,489			$	(18,389	)

Jim Green, the management accountant at RJM, is analyzing the companys performance for this year in order to explain to management the specific aspects that drove the company to success. Some of the information Jim obtained follows:

	Current Year				Prior Year
Sales units		40,600				47,000
Price	$	23.15			$	28.27
Direct materials cost per unit of material	$	7.30			$	8.40
Direct materials required per unit		1.40				2.00
Direct labor required per unit		0.60				0.75
Wage rate ($/hour)	$	11.00			$	14.00

Assume that RJM, for efficiency and to reduce cost, maintains little or no direct materials or work-in-process inventory.

Required:

1. Determine the selling price variance for the current year based on sales dollars. Determine the sales volume variance based on contribution margin.

2. Determine the following variable cost variances:

a. The usage and price variances for direct materials.

b. The efficiency and rate variances for direct labor.