Sebastian Ronaldo is an accountant and analyst for Premium Door Co. which manufactures exterior doors for residential houses. Premium Door Co. uses two direct-cost categories: direct materials and direct manufacturing labour. Manufacturing overhead is allocated to production based upon kilograms of materials used.

The following BUDGETED information was obtained from Premium Door Co.:

At the beginning of the period, they budgeted annual production and sales of 315,000 doors and the following budgeted (standards) for each door:

The following are the ACTUAL results obtained from Premium Door Co. at the end of the accounting period:

REQUIRED

1.Compute the following variances: (20 marks)

a)Direct materials price variance

b)Direct materials efficiency variance

c)Direct manufacturing labour price variance

d)Direct manufacturing labour efficiency variance

e)Variable manufacturing overhead spending variance

f)Variable manufacturing overhead efficiency variance

g)Production-volume variance

h)Fixed manufacturing overhead spending variance

Provide at least one potential explanation for each of: 1) any direct materials variance and 2) any direct manufacturing labour variance. Therefore, your response should have at least 2 explanations - 1 for materials and 1 for labour.