91 6: Performance Evaluation through Standard Cost 1. Zanora Industries computes variances as a basis for evaluating the performance of managers responsible for controlling costs. For several months, the labor quantity variance has been unfavorable. Required: Briefly explain what could be causing the unfavorable labor quantity variance and indicate what type of corrective action, if any, might be taken. 2. Followings are information about Kakao's Chocolate: 1. Actual production: 4,000 boxes of chocolates 2. Direct materials: actual used 4,300 pounds of chocolate at RM 15 per pound. Standard price is RM 16 per pound and standard quantity allowed per box of chocolates is 1 pound. 3. Direct labour: actual hours of 6,400 at RM 30.5 per hour. Standard hours allowed per box of chocolate is 1.5 hours. Standard price is RM 30 per hour Required: Calculate the followings: i. Material price variance ii. Material quantity variance iii. Labour price variance iv. Labour quantity variance