KCL Manufacturing expects that there will be a standard $3$ kilos of raw material used for every unit of finished goods produced. KCL began the month of May with $5,000$ kilos of raw material, purchased $15,000$ kilos for $19,500$ and ended the month with $4,000$ kilos on hand. The company produced $5,000$ units of finished goods. The company estimates standard costs at $1\mathrm{.}50$ per kilo.

REQUIRED:

$($a$)$ What is the materials price variance for the month of May based on the quantity purchased? Show all calculations.

$[2$ marks$]$

$($b$)$ What is the materials efficiency variance for the month of May? Show all calculations.

$[2$ marks$]$

$($c$)$ Give two possible reasons for the materials price and efficiency variances you calculated?

$[4$ marks$]$

$($Total $8$ marks$)$