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Arctic Gear Inc. manufactures jackets and other cold weather clothing. A popular high end ski parka...

Arctic Gear Inc. manufactures jackets and other cold weather clothing. A popular high end ski parka requires the following:

Direct materials standard                            2 square metres at $13.50 per metre

Direct manufacturing labour standard         1.5 hours at $20.00 per hour

During the third quarter, the company made 1,500 parkas and used 3,150 square metres of fabric costing $36,225. Direct labour totaled 2,100 hours for $47,250.

Required:

a.   Compute the direct materials price and efficiency variances for the quarter.

b.  Compute the direct manufacturing labour rate and efficiency variances for the quarter.

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