BFA612 managerial and cost accounting

Question 5 Lachman Led manufactures fibreglass snowboards. The standard costs include 4.5 kg of direct materials, at the budgeted price of $4.5 per kilogram, and 1.5 hours of direct manufacturing labour, at the budgeted rate of $10 per hour. The following are additional data for the month of June: Units completed 50, 000 units Direct materials purchased and used 230, 000 kilograms Cost of direct materials purchased and used $1,058, 000 Actual direct-manufacturing labour-hours 73, 000 hours Actual direct-labour cost $803, 000 There were no beginning inventories. Required [5 marks] a) Calculate direct materials variances (price and efficiency) for June. June. b) Calculate the direct manufacturing labour variances (rate and efficiency) for [5 marks] [5 marks] c) Provide a possible explanation for the above results