U1, LP to sell all units produced at practical and theore CITU ps from Incomplete Data Xcel local home building supply PROBLEM 10-34 Materials and Labour Variances; Computations from Ines [LOI, LO2, LO3] Grand River Manufacturing produces a metal flange that it sells to several local he retailers. The company has set standards as follows for materials and labour: Direct Materials Direct Labour ? hours Standard quantity or hours per unit ........ Standard price or rate......... Standard cost per unit. . . . . . . . . . . . . . . . 1.5 kilograms $3 per kilogram $4.50 $? per hour $? During the past month, the company purchased 1,500 kilograms of direct materials at a costo $4,200. All of this material was used in the production of 840 units of product using 425 hours of direc labour. Direct labour cost totalled $4,675 for the month. The following variances have been computed: Labour rate variance........ Total labour variance ..... Materials quantity variance..... $425 U $375 F $75 U