Pogue Ltd had the following information relating to the production of the XLZ240 for June 2022.

	Budget		Actual
	12,400 units		10,800 units
Materials	68,200kg	262,570	61,700kg	233,226
Direct Labour	29,149 hours	253,518	24,180 hours	217,620
Fixed Overhead	332,320		318,950

Additional information

• Material and labour are variable costs.
• Overheads are fixed costs.

Required:

(a) Calculate and comment on

(i) Material Price variance

(3 marks)

(ii) material usage Variance

(3 marks)

(iii) labour rate variance

(3 marks)

(iv) Labour efficiency variance

(3 marks)

(v) Fixed overhead variance

(3 marks)

(b) Explain the causes of material and labour variance.