QUESTION 2 (12 marks) During October, Natuzzi Ltd produced 3,900 turbines, and the accounting records indicated the following actual data: Direct material purchased Direct material used Direct labour 10,000 kilograms @$4.70 per kilogram 9,550 kilograms 15,100 hours @ $20 per hour The turbine has the following standard prime costs: Direct material: 2.5 kilograms @$4.50 per kilogram Direct labour hours: 4 hours @$19 per hour Standard prime cost per unit REQUIRED: $ 11.25 $ 76.00 $ 87.25 a) For the month of October, calculate the following variances, indicating whether each is favourable or unfavourable: i) Direct material price variance (calculated at time of purchase). (2 Marks) ii) Direct material quantity/efficiency variance. iii) Direct labour rate variance. iv) Direct labour efficiency variance. (2 Marks) (2 Marks) (2 Marks) b) Based on the answers to the above, suggest TWO possible reasons for the materials price variance and TWO possible reasons for the labour efficiency variance. (4 marks)