Acme Inc. has the following information available:

Actual price paid for material	$1.00
Standard price for material	$1.20
Actual quantity purchased and used in production	100
Standard quantity for units produced	110
Actual labor rate per hour	$15.00
Standard labor rate per hour	$16.00
Actual hours	200
Standard hours for units produced	220

Required:

1. Compute the material price and quantity, and the labor rate and efficiency variances.
2. Describe the possible causes for this combination of favorable and unfavorable variances.

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