Decorator (Pty) Ltd manufactures designer lampshades and supplies them to Home stores in the Cape Town area. The company has a manufacturing plant in Milnerton, Cape Town. Decorator (Pty) Ltd uses a standard costing system. The company uses two types of material for the manufacturing of these lampshades, material Metal 1 and material Metal 2. The following information has been obtained pertaining to the year ended 31 December 2021: The company budgeted to manufacture and sell 6 000 units. Only 5 000 units were manufactured and sold. 2.1 The standard cost per unit for material Metal 1 was R13.60 (0.85kg at R16 per kg). During the financial year 4 000kg of Metal 1 were purchased at a total cost of R70 000. The standard cost per unit for material Metal 2 was R12.75 (0.75kg at R17 per kg). During the financial year 3 500kg of Metal 2 were purchased. There was no opening or closing inventory for Metal 2. The company budgeted to work 60 000 labour hours at a rate of R13.50 per hour. 55 000 labour hours were worked. The company had an unfavourable labour rate variance of R27 500. Variable manufacturing overheads vary with labour hours worked. The budgeted rate was R4.50 per hour. Required: Question 2 2.2 Calculate the following: (i) Material price variance for material Metal 1. (ii) Material usage variance for material Metal 2. (iii) Actual labour rate. (iv) Labour efficiency variance. (v) Variable manufacturing overheads efficiency variance. [Round all answers to two decimal places, if necessary.] Discuss two reasons for an unfavourable material usage variance. Discuss two reasons for an unfavourable labour efficiency variance. (1) (ii) MARKS 17 8