Consider the following information for the O'Shea Company for April, when 2,000 finished units of ceramics were produced:
Direct materials used: 4,400 pounds. The standard allowance per finished unit is two pounds at $15 per pound. Six thousand pounds were purchased at $16.50 per pound, totaling $99,000.
Actual direct labor hours were 3,250 at a total cost of $40,300. The standard direct labor cost per finished unit was $18. Standard labor time allowed is 1.5 hours per unit.
Required:
1. Calculate the direct material price and efficiency variance and the direct labor price and efficiency variance. The direct materials price variance will be based on a flexible budget for actual quantities purchased, but the efficiency variance will be based on a flexible budget for actual quantities used.