On January, 2021 the following Standard Cost Card relating to the product Cleanex was extracted from the records of Quicksoap Ltd.

Standard Cost Card

Details	$
Direct materials 4 litres @ $500	2,000
Direct labour 2 hrs @ $50	100
Total cost	2,100

Actual results for the period:

Production 400 units

Direct raw materials purchased 1,700 litres at a cost of $765,000.

Opening stock of direct raw materials 100 litres

Closing stock of direct raw materials 40 litres

Direct wages $45,000 for 750 hours

Required:

1. Explain the concept of variance analysis. (3 marks)
2. Calculate direct raw material price variance. (5 marks)
3. Calculate direct raw material usage variance. (5 marks)
4. Calculate direct labour rate variance. (5 marks)
5. Calculate direct labour efficiency variance. (5 marks)
6. Identify two (2) possible causes of direct labour efficiency variances. (2 marks)