Question: 1. Direct materials rate variance, $800 unfavourable. 2. Direct materials efficiency variance, $1,800 favourable. 3. Direct manufacturing labour rate variance, $4,000 favourable. 4. Direct manufacturing

1. Direct materials rate variance, $800 unfavourable.

2. Direct materials efficiency variance, $1,800 favourable.

3. Direct manufacturing labour rate variance, $4,000 favourable.

4. Direct manufacturing labour efficiency variance, $600 unfavourable.

Question

(a) Give at least three alternative good reasons why a favourable rate variance for direct materials might be reported.

(b) Give at least three alternative good reasons why an unfavourable efficiency variance for direct manufacturing labour

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