ACME Incorporated reports the following two independent situations

1.

A $2,500 unfavourable materials price variance and a $2,000 favourable quantity variance. Provide a brief explanation fo the possible causes of each variance. (2 marks)

2.

$4,000 favourable labour rate variance and a $2,500 unfavourable labour efficiency variance. Provide a brief explanation of the possible causes of each variance. (2 marks)