uring February the Lungren Manufacturing Company's costing system reported several variances that the production manager was surprised to see. Most of the company's monthly variances are under $125, even though they may be either favorable or unfavorable. The following information is for the manufacture of garden gates, its only product:

1.Direct materials price variance, $800 unfavorable.2.Direct materials efficiency variance, $1,800 favorable.3.Direct manufacturing labor price variance, $4,000 favorable.4.Direct manufacturing labor efficiency variance, $600 unfavorable.Required:

a.Provide the manager with some ideas as to what may have caused the price variances.b.What may have caused the efficiency variances