ABC Company's standard and actual costs per unit for the most recent period, during which 200 units were actually produced, are given below:

	Standard	Actual
Materials:
Standard: 2 metres at $1.50 per metre	$3.00
Actual: 2.1 metres at $1.60 per metre		$3.36
Direct labour:
Standard: 1.5 hrs. at $6.00 per hr.	9.00
Actual: 1.4 hrs. at $6.50 per hr.		9.10
Variable overhead:
Standard: 1.5 hrs. at $3.40 per hr.	5.10
Actual: 1.4 hrs. at $3.10 per hr.	_____	4.34
Total unit cost	$17.19	$16.80

There were no inventory of materials at the beginning or end of the period. Required: From the above information, compute the following variances. Show whether the variance is favourable (F) or unfavourable (U): (10 marks)

a) What is the materials price variance?

b) What is the materials quantity variance?

c) What is a possible explanation for the direct material variance?

d) What is the direct labour rate variance?

e) What is the direct labour efficiency variance?

f) What is a possible explanation for the direct labour variance?

g) What is the variable overhead spending variance?

h) What is the variable overhead efficiency variance?