Example The Monro corporation manufactures lamps it has set up the following standards per finished unit for direct material and direct labor: Direct material : 10lbs at 4.5$ per lb 45$ Direct Labor: 0.5 hour at 30$ per hour 15$ The number of finished units budgeted for January 2009 was 10,000,9,850 units were produced actual results in January 2009 were: Direct material : 98,055 lbs, used Direct manufacturing labor: 4,900 hours $154,350 During the month material purchases amounted to 100,000 lbs at total cost of $ 465,000 Required: compute price and efficiency variances for direct labor and direct materials