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 Rs.4.50 per lb. Rs. 45.00

Direct manufacturing labor. 0.5 hour at Rs.30 per hour 15.00

The number of finished units budgeted for January 2020 was 10000, 9850 units were actually produced.

Actual results in January 2020 were as follows.

Direct materials 98055 lb used

Direct manufacturing labor 4900 hours Rs.154350

Assume that there was no beginning inventory of either direct materials or finished units . During the month, materials purchase amounted to 100000 lb at a total cost of Rs.465000. input price variances are isolated at the time of usage.

Required,

1. compute the January 2020 price and efficiency variances of direct material and direct manufacturing labor.
2. prepare journal entries to record the variances in requirement.
3. comment on the January 2020 price and efficiency variances of Monroe Corp ration.
4. why might monroe calculate direct material price variances and direct materials efficiency variances with reference to different points in time.