1. Maeda Company manufactures a line of computer monitors. Although the demand for themonitors is increasing, feedback from customers and production workers are gathered forfuture improvement and sustainability of the business. The feedback provided are asfollows:

• Productpricetooexpensive
• Warrantyclaimsincrease
• Frequentmaintenanceformachinerieswhich reducestheproductioncapacity
• Increaseinmaterial wastageduetopoorknowledgeonoperatingthenewmachine
• Shortageofmaterial fora specificproduction
• Priceofdirect material margin price istoohigh

Followingisthereconciliationstatementofthebudgetedandactualnetprofitforthecurrent period of the company:

	RM		RM	RM
Budgeted net profit				2,500,000
Sales Variance:
Salesmarginprice	500,540	F
Salesmarginvolume	100,330	A	400,210	F
MaterialVariance:
MaterialPrice	230,500	A
MaterialUsage	333,333	A	563,833	A
Labour Variance:
Labour Rate	228,668	A
LabourEfficiency	420,420	A	649,088	A
Productionoverhead variance			0	(812,711)	A
Actualnetprofit				1,687,289

Required:

Determineallpossiblereasonsthatcausethevariance statedinthereconciliationstatement.