Warrier Gear manufactures clothing. A flannel shirt requires the following:

Standard Direct Materials 2 square yards at $15 per yard

Standard Manufacturing Labor 1.5 hours at $25 per hour

During the third quarter, the company made 1,500 shirts and used 3,200 square yards of fabric costing $44,800. Direct labor totaled 2,100 hours for $56,700.

Required:

(A) Compute the direct manufacturing labor price and efficiency variances for the quarter. Show all computations.

(B) Describe 2 possible reasons for each of the following variances: direct manufacturing labor price variance and direct manufacturing efficiency variance.