a. Using the information provided by Mr. Gill, compute the following variances. Show all calculations and label your answers clearly.

Actual price paid for ingredients	$50.00
Standard price for ingredients	$49.75
Actual quantity purchased and used	3.85 pounds
Standard quantity used	4 pounds
Actual labor rate per hour	$52.50
Standard labor rate per hour	$50.00
Actual hours for Pie produced	7 hours
Standard hours for Pie produced	6.9 hours

b. Compute the direct material price variance, direct material quantity variance, and the total direct materials variance.

c. Compute the direct labor rate variance, direct labor time variance, and the total direct labor variance.

d. After analyzing these variances, should Mr. Gill be concerned? Why or why not?