ABC Ltd$.$ manufactures and sells a single product. From the following data for Nov. $2005,$ you are required to

calculate different variances $($Material Variance, Mix Variance, Labour Rate Variance, Labour Efficiency

Variance, Variable and Fixed Efficiency Variance$).$

The Standard Cost of a single manufactured product comprises the following :

The budgeted selling price is $$350$ each and the budgeted sales for the month were $6,000$ units.

Following were the transactions for the month

Write a report explaining the below to the manager of ABC Ltd$.$:

The reason for the direct material cost variance and how can they have a favorable variance?

Is the current labour efficient in their job? If yes, then why do they still have a labour rate variance and

is there any way they can avoid that? If they do it what could be the possible effect on their efficiency?