Drogheda Chemical Ltd has set-up the following standards per finished output unit for direct materials and direct manufacturing labour. 

Direct materials: 10 kg at €3.00 per kg ............................................................... €30.00 

Direct manufacturing labour: 0.5 hour at €20.00 per hour........................... €10.00 

The number of finished output units budgeted for March 2018 was 10,000; 9810 units were actually produced. 

Actual results in March 2018 were: 

Direct materials: 98,073 kg used 

Direct manufacturing labour: 4900 hours ........................................................ €102,900 

Assume that there were no opening stocks of either direct materials or finished units. During the month, materials purchases amounted to 100,000 kg, at a total cost of €310,000. Price variances are isolated upon purchase. Efficiency variances are isolated at the time of usage. 

Required 

1. Calculate the March 2018 price and efficiency variances of direct materials and direct manufacturing labour. Comment on these variances. 

2. Prepare journal entries to record the variances in requirement 1. 

3. Why might Drogheda Chemical Ltd calculate materials price variances and materials efficiency variances with reference to different points in time?