From the information in the table, the labour ____________ variance is 1,980 adverse, and the labour ____________ variance is 1,080 favourable.

1. Efficiency ; volume

2. Volume; efficiency

3. Efficiency ; rate

4. Rate ; efficiency

Sales Direct Material Direct Labour Fixed production overhead Fixed selling & admin overhead Budgeted (400 units) 30 3kg x 4 2-hours x 5.50 f 12,000 4,800 4,400 2,500 1,700 -1,400 Actual (500 units) 32 2.8kg x 3.50 2.4 hours x 5 f 16,000 4,900 6,000 3,200 2,300 -400 Budgeted Profit Actual Profit