The following actual data was given for the firm.

8,000 pounds of material were purchased costing $ 40,000

Four hundred units were produced requiring 900 labor hours costing $5,400 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 2 pounds per unit at a price of $6 per unit.

A) - Calculate all labor variances

B) - Calculate all material variances

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