The

Wayne

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 $4.50 per lb.	$45.00
Direct manufacturing labor: 0.5 hour at $31 per hour	15.50

The number of finished units budgeted for January

2017

was

9,960;

9,800

units were actually produced

Actual results in January

2017

were as follows:

Direct materials: 97,500 lb. used
Direct manufacturing labor: 4,700 hours	$153,925

Assume that there was no beginning inventory of either direct materials or finished units. During the month materials purchased amounted to

99,600

lb., at a total cost of

$468,120.

Input price variances are isolated upon purchase. Input-efficiency variances are isolated at the time of usage.

1.	Compute the January 2017 price and efficiency variances of direct materials and direct manufacturing labor.
2.	Prepare journal entries to record the variances in requirement 1.
3.	Comment on the January 2017 price and efficiency variances of Wayne Corporation.
4.	Why might Wayne calculate direct materials price variances and direct materials efficiency variances with reference to different points in time?