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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

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 for January 2022 were as follows: Direct materials used: 98,055 lbs Direct manufacturing labour: 4,900 lbs $154,350 Assume that there 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

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