ABC Company is a manufacturer of a single product, picnic table. The following information pertains to standard costs and actual costs data of the company in September.

Accounts	Quantity per unit	Rate per unit	Total costs per unit
Direct Materials:
Standard	3 pounds	$4/pound	$12
Actual	3.2 pounds	$4.1/pound	$13.12
Direct Labor:
Standard	2 hours	$25/hour	$50
Actual	2.5 hours	$22/hour	$55
Variable MOH
Standard	1.2 hour	$4/hour	$4.8
Actual	1 hour	$4.5/ hour	$4.5

Arrowhead purchased 40,00 pounds of direct materials and used 32,000 pounds of them to make 10,000 tables in September. There was no beginning inventory of materials.

Instructions:

1. Compute the following variances for September:
   1. Material price and quantity variances.
   2. Labor efficiency and rate variances.
   3. Variable overhead rate and efficiency variances.
2. Explain whether the variances above are favorable or unfavorable.
3. Explain the plausible causes of each variance.