The Monroe Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labor:

Direct materials: 10 lb. at $5.00 per lb.	$50.00
Direct manufacturing labor: 0.5 hour at $30 per hour	15.00

The number of finished units budgeted for January 2017 was 10,040; 9,950 units were actually produced.

Actual results in January 2017 were as follows:

Direct materials: 98,500 lb. used
Direct manufacturing labor: 4,800 hours	$151,200

Assume that there was no beginning inventory of either direct materials or finished units. During the month, materials purchased amounted to 100,400 lb., at a total cost of $517,060. Input price variances are isolated upon purchase. Input-efficiency variances are isolated at the time of usage.

Requirements:

1.	Compute the January 2017 price and efficiency variances of direct materials and direct manufacturing labor.
2.	Prepare journal entries to record the variances in requirement 1.
3.	Comment on the January 2017 price and efficiency variances of Monroe Corporation.
4.	Why might Monroe calculate direct materials price variances and direct materials efficiency variances with reference to different points in time?