The Monroe Corporation manufactures lamps. It has set up the following standards as per finished units for direct material and direct labor:

Direct Material: 10lb @ $4.5 per lb = $45

Direct Labor: 0.5 hours @ $30 per hour = $15

The number of finished units budgeted for January 2020 was 10,000 and 9,850 units were actually produced.

Actual results in January 2020 were as follows

Direct Material: 98,055 lb used

Direct Labor: 4900 hours

Assume that there was no beginning inventory of either direct materials or finished units

During the month, material purchased amounting to 100,000lb at a total cost of $465,000. Input price variances are isolated upon purchase. Input efficiency variances isolated at the time of usage.

1. Compute the January 2020 price and efficiency variances of direct material and Direct Labor
2. Prepare Journal entries to record the variances in requirement 1
3. Comment of the January 2020 price and efficiency variances of Monroe Corporation
4. Why might Monroe Corporation calculate direct materials price variances and direct materials efficiency variances with reference to different points in time.