In Biden plc, the standard cost of making a product is as follows:

Variable Costs:

Direct Materials 5kg @ € 1.70 per kg

Direct Labour 3 hours @ €10 per hour

Variable Production Overheads 3 hours @ €6 per hour

Budgeted Fixed Production Overheads €176,250

Budgeted production for March 2021 was 750 units.

In March, the actual results were as follows:

780 units were produced.

4,290kg of Direct Materials were used at a cost of €6,864.

2,184 Direct Labour hours were worked at a cost of €24,024.

Variable Production Overheads (based on Direct Labour Hours) cost €12,558

Fixed Production Overheads cost €192,400

Required: (a) Calculate the following variances:

(i) Direct Material Price Variance.

(ii) Direct Material Usage Variance.

(iii) Direct Labour Rate Variance.

(iv) Direct Labour Efficiency Variance.

(v) Variable Overhead Expenditure Variance.

(vi) Variable Overhead Efficiency Variance.

(vii) Fixed Overhead Expenditure Variance.

(b) Provide possible reasons for the Direct Material Variances and the Direct Labour Variances.