Superlight Limited has the following standard information for its single product:

	Quantity Standard	Price Standard
Material	7 kilogram per unit	$1.50 per kilogram
Labour	2.5 hours per unit	$20 per hour

In March, the company produced 6,000 units. Actual data associated with Marchs operations are as follows:

Materials purchased	19,000 kilograms at a cost of $26,100
Material used in production	51,000 kilograms
Labour used in production	14,500 hours at $23 per hour

Required:

1. Calculate the material price variance and material efficiency variance.

(5 marks)

2. Calculate the labour price variance and labour efficiency variance.

(5 marks)

3. Give one possible explanation for each of the 4 variances you calculated in parts 1) and 2) above. Hint: is the variance (un)favourable? Is there possibly a relationship between any of these variances? (5 mark)