Zaira Ltd produces and sells unique makeup cases, and has the following standards for one type of product for May 2021:

	Standard per case
Direct materials	2 kilograms	$10 per kilogram
Direct manufacturing labour	0.4 hour	$15 per hour

The following information relates to the actual performance during May 2021:

1. Actual output of make-up cases produced, 1,800 units
2. Direct materials purchased and used was 3,700 kilograms at a price of $9.5 per kilogram
3. Actual direct manufacturing labour costs, $11,625
4. Actual hours of direct labour used were 750 hours.

Required (show your workings):

	Calculate the favourable or unfavourable price variance for direct materials	6 marks
	Calculate the favourable or unfavourable efficiency variance for direct materials	6 marks
	Calculate the favourable or unfavourable rate (price) variance for direct labour	6 marks
	Calculate the favourable or unfavourable efficiency variance for direct labour	6 marks
	Give a plausible explanation for the variance that occurred for direct material variances	2 marks