The company produces product A. The company uses marginal costing system. The standard cost card for product is as follows:

Direct materials USD 20 per unit

Direct labor (6 hours at USD 7.5/hour) USD 45 per unit

Variable production overhead USD 27 per unit

The budgeted and actual activity levels for the last quarter were as follows:

Budgeted Sales (units) 20 000 Actual 19 000

Budgeted Production 20 000 Actual 21 000

The actual costs were as follows:

Direct material: USD 417 900

Direct labour: USD 949 620

Variable production overhead: USD 565 740

Required: Calculate usage and price variances for all costs.

Provide at least 2 possible causes for every variance calculated.