Grand River Manufacturing produces a metal flange that it sells to several local home building supply retailers. The company has set standards as follows for materials and labour:

	Direct Materials		Direct Labour
Standard quantity or hours per unit	1.5	kilograms	? hours
Standard price or rate	$ 4	per kilogram	? per hour
Standard cost per unit	$ 6		?

During the past month, the company purchased 1,500 kilograms of direct materials at a cost of $6,375. All of this material was used in the production of 966 units of product using 425 hours of direct labour. Direct labour cost totalled $5,950 for the month. The following variances have been computed:


Labour rate variance	425	F
Total labour variance	350	F
Materials quantity variance	204	U

Required:

1. Compute the following for direct labour. (Round “hours per unit” answer to 2 decimal places.)

a.	Standard rate per hour for labour.
b.	Standard quantity allowed for labour for the month’s production.	hrs.
c.	Standard quantity of labour allowed per unit of product.	hr(s) per unit

2. Compute the following for direct materials. (Indicate the effect of each variance by selecting “F” for favourable, “U” for unfavourable, and “None” for no effect (i.e., zero variance). Round your answers to 2 decimal places.)