Let's continue with our story on coach Rural Meyer. Rural is concerned that his shady activities did not bring profitable results. He wanted to investigate his spending variances in greater detail. The six variances as they relate to the manufacturing of replica memorabilia are listed as follows:

Materials Quantity Variance $3,750 unfavorable

Materials Price Variance $500 favorable

Labor Efficiency Variance $5,700 unfavorable

Labor Rate Variance $700 unfavorable

Variable Overhead Efficiency Variance $1,000 unfavorable

Variable Overhead Rate Variance $1,900 favorable

A. Rural Meyer lacks the knowledge to deal with these variances. He asks you, a much more intelligent soul, for help. Which two variances would you recommend that Rural Meyer investigate in great detail? Give me at least one example of something that could contribute to each of the two variances to be investigated. (5 points)

B. Assume variable overhead is applied on the basis of machine-hours. The production of each unit of replica memorabilia has a standard of using 2 machine hours at a standard rate of $12 per machine hour. In reality, Rurals shady workers incurred an actual variable overhead rate of $10 per machine hour. 225 total units of replica memorabilia were produced. What was the actual number of total machine hours? (5 points)