The following actual data was given for the firm

8000 pounds of materials were purchased costing $40,000

Four hundred units were purchased requiring 900 labor hours costing $4500 and 1000 pounds of materials. The standard for labor is 2 hours per unit with a wage rate of $3 per hour and for materials 2 pounds per units at a price of $4 per unit.

Calculate

(a) all labor variances

(b) all material variances

(c) write an analysis of how you would explain to management the meaning of the variances you calculated.