Given the following information:

Budget Actual

Units produced 10,000 10,010

Materials (kg) 400 405

Direct Labour (Hours) 35,000 37,010

Material Costs $8,000 ?

Direct Labour Costs $385,000 $408,960

Variable Overhead Costs $350,000 $370,000

Fixed Overhead Costs $160,000 $136,358

Other Information

Overhead is Allocated on Direct Labour Hours

During the year, 500 kg of materials were purchased for $9,000

Beginning Inventory: none

Ending Inventory: 95kg

Required:

Calculate the following variances

1. Material Rate
2. Material Efficiency
3. Labour Price
4. Labour Efficiency
5. Variable Overhaed Rate
6. Variable Overhead Efficiency
7. Fixed Overhead Rate
8. Fixed Overhead Production Volume
1. What is the single likely cause of the significant variances?