The following actual data was given for the firm.

8,000 pounds of material were purchased costing $40,000. 400 units were produced requiring 900 labor hours costing $4,500 and 1,000 pounds of material. The standard for labor is 2 hours per unit with a wage rate of $3 per hour and for materials 2 pounds per unit at a price of $4 per unit.

a) calculate all labor variances

b) calculate all material variances

c) Write an analysis of how you would explain to management the meaning of the variance you calculated.