The standard cost card for a product is shown belowfor the period ended July 2019:

Direct materials	6 kilos @ $3.25 per kilo
Direct labour	2.5 hours @ $11.50 per hour
Monthly budgeted production is 25,000 units.

Actual results for July were:

25,600 units were produced

180,000 kilos of direct materials were purchased for $540,000. Of this, only 173,000

kilos were used in production

63,000 direct labour hours were worked, at a total cost of $740,250

Required:

A. Compute the following variances:

Direct materials price variance (4 marks)

Direct materials efficiency variance (4 marks)

Direct material total variance (4 marks)

Direct labour rate variance (4 marks)

Direct labour efficiency variance (4 marks)

Direct labour total variance (4 marks)

B. Outline one cause of an adverse labour efficiency variance (1 mark)