Skold Company produces slacks. Materials for the slacks are dyed in large vats. After dyeing the materials for a given colour, the vats must be cleaned and prepared for the next batch of materials to be coloured. The following standards for changeover for a given batch have been established:

Direct materials (2.5 kg @ $1.20) _______ $ 3

Direct labour (0.40 hr. @ $16.00) _______ $ 6.40

Standard prime cost _________________ $ 9.40

During the year, 79.500 kilograms of material were purchased and used for the changeover activity. There were 30,000 batches produced, with the following actual prime costs:

Direct materials _________$ 86,800

Direct labour ____________173,850 (for 11,400 hrs.)

Required:

1. Compute the materials and labour variances associated with the changeover activity, labelling each variance as favourable or unfavourable.
2. Find the total material variance and total labour variance labelling each variance as favourable or unfavourable