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

Direct material: 10 lbs at $4.50 per lb	$45.000
Direct manufacturing labour: 0.5 hour at $30 per hour	$15.00

The number of finished units budgeted for January 2022 was 10,000; 9,850 were actually produced.

Actual results f

or January 2022 were as follows:

Direct materials used: 98,055 lbs

Direct manufacturing labour: 4,900 lbs $154,350

Assume that the

re was no beginning inventory of either direct materials or finished goods.

During the month, materials purchased amounted to 100,000 lbs a a total cost of $465,000. Input price variances are recorded upon purchase. Input - efficency variancesof both e direct material and direct manufacturig labour are recorded at the time of udage:

Required:

a. Compute January total, price & efficiency variances of direct materials & direct manufacturing labour.

b. Prepare journal entries to record variances in requirement.

c. Comment on the January price & efficiency variances of Shaler Corporation.