The following is the standard costs card for Donaldson's Companies only product.

Standard Hours				Standard Rate per Hour				Standard Cost
90 minutes (1.5 hours)				$10.00				$15.00

The company manufactured and sold 18,000 units of product during the year. The company worked 29,250 direct labour hours during the year at a cost of $9.75 per hour. Overhead cost is applied to products on the basis of direct labour hours.

1. Compute the direct labour rate, labour efficiency and total variances for the year.

2. The budgeted variable manufacturing overhead rate is $3.00 per direct labour-hour. During the year, the company incurred $90,000 in variable manufacturing overhead cost.