List two causes or reasons for each of the variances calculated above: MPV, MQV, LRV, AND LEV depending on whether you calculated a favorable or unfavorable variance.

MPV: It can be unfavorable when the cost of raw materials goes up after a budget has already been set. It can also be so if the materials are needed urgently: rushed overnight shipping will cost more.

MQV: It can be unfavorable if the quality of raw materials is low. It can also be so if due to improper employee training resulting in poor performance.

LRV: It can be unfavorable due to pay premiums in which the actual amounts paid may include extra payments for shift differentials or overtime. For example, a rush order may require the payment of overtime in order to meet an aggressive delivery date. Another reason could be a benefits change. If the cost of labor includes benefits, and the cost of benefits has changed, then this impacts the variance.

LEV: An unfavorable variance means that labor efficiency has worsened. A reason could be because the employees may not have received written work instructions. Another reason could be the standard may be based on an assumption of a minimum amount of training that employees have not received.