The following actual data was given for the firm.

6,000 pounds of material were purchased costing $ 48,000

Five hundred units were produced requiring 1500 labor hours costing $7,500 and 1, 000 pounds of material . The standard for labor is 2 hours per unit with a wage rate of $5 per hour and for materials 3 pounds per unit at a price of $15 per unit.

A) 10% - Calculate all labor variances

B) 10%-- Calculate all material variances

C) 2% - Write an analysis of how you would explain the labor variances to management