Minamoto, a traditional Japanese company manufacturing high quality kitchen knives, recently had a fire destroy one of their factories. The company lost substantial data but was able to salvage some information. To prepare a report to their top management, the company has asked you for help.

The following are some information relating to direct labour and direct materials at the factory.

Standard direct-labour rate	$14.00
Actual direct-labour rate	$12.20
Standard direct-labour hours	12,000
Direct-labour efficiency variance - Unfavourable	$9,800
Standard unit price for direct materials	$4.50
Actual quantity of direct materials purchased and used	1,800 kg
Standard quantity allowed for actual production	1,650 kg
Direct materials price variance - Favourable	$198

Required (show all your calculations below and write in your own words):

(a) The company has asked you to calculate the following:

(i) Actual direct-labour hours worked, rounded to the nearest hour.

(ii) Price variance (or rate variance) for direct-labour.

(iii) Actual purchase price for per unit of direct materials.

(iv) Efficiency variance for direct materials.

(b) Explain fully one possible cause of the unfavourable direct-labour efficiency variance in the table above.

(c) Explain fully one possible cause of the favourable direct materials price variance in the table above?