The Monroe Corporation manufactures lamps. It has set up the following standards per

finished unit for direct materials and direct labour:

Direct material: $10$kg @ $$4\mathrm{.}50$ per kg $$45\mathrm{.}00$

Direct labour: $0\mathrm{.}5$ hour @$$30$ per hour $15\mathrm{.}00$

The number of finished units budgeted for January $2019$ was $10,000$; $9,850$ units were

actually produced.

Actual results in January $2019$ were:

Direct materials: $100,000$kg purchased @ $$4\mathrm{.}65$ per kg

Direct materials: $98,055$ kg used

Direct labour: $4,900$ hours $$154,350$

Required:

a$)$ Calculate the January $2019$ price and quantity variance of direct materials

b$)$ Calculate the January $2019$ rate and efficiency variance of direct labour.

c$)$ Comment on the January $2019$ direct materials and direct labour variances.