11.6# Capsicum Ltd operates a standard costing system. The results for January were as follows:

Standard price of material £6 per kg Actual material issued to production 3,500 kg The following two variances were also recorded:

Direct material price variance £1,400 adverse Overall Direct material variance £1,100 adverse

(a) Calculate:

(i) The actual price per kg of material

(ii) The standard quantity of material used in kilograms.

(b) Suggest one possible reason for each of the two variances listed above.