1. Direct materials rate variance, $800 unfavourable.

2. Direct materials efficiency variance, $1,800 favourable.

3. Direct manufacturing labour rate variance, $4,000 favourable.

4. Direct manufacturing labour efficiency variance, $600 unfavourable.

Question

(a) Give at least three alternative good reasons why a favourable rate variance for direct materials might be reported.

(b) Give at least three alternative good reasons why an unfavourable efficiency variance for direct manufacturing labour