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

Direct material :10 lb at Rs .4.50 per l b . Rs.45.00

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

The number of finished units budgeted for January 2020 was 10,000:9850 units were actually produced

Actually results in January 2020 were as follow:

Direct materials :98,055 lb .used

Direct manufacturing labor: 4,900 hours Rs 154,350

Assume that there as no beginning inventory of either direct materials or finished units. During the month , material purchased amounted to 100,000 at a cost of Rs 465,000 .input price variances are isolated upon purchased . Input-efficiency variance are isolated at

the time of usage .

Require:

compute the January 2020 price and efficiency variances of direct materials and direct manufacturing labor.

prepare journal entries to record the variances in requirement 1.

comment on the January 2020 price and efficiency variance of Monroe Corporation.

Why might Monroe calculate direct material price variances and efficiency variances with reference to different point in time?