Section B: This section has two parts. Both parts are to be attempted. Part A: Show all workings in this part.

Rybrian Manufacturers has developed the following standards for one of its products: STANDARD VARIABLE COSTCARD ONE UNIT OF PRODUCT Direct materials: 20 square metres @ $10 per square metre $200.00 Direct labour: 8 hours @ $12 per hour 96.00 Variable overhead: 8 labour hours @ $6 per hour 48.00 Total standard variable cost per unit $344.00 The following activities occurred during the month of June: Direct materialspurchased 150,000 square metres at $10.50 per square metres Direct materials used 96,000 square metres Unitsproduced 5,000 units Direct labour 41,000 hours at $13.10 per hour Actual variableoverhead $238,000 Compute the following for the month of June: a. the direct materials price variance; b. the direct materials efficiency variance; c. the direct labour rate variance; d. the direct labour efficiency variance; e. the variable overhead spending variance; and f. the variable overhead efficiency variance. Part B: Discussion of variance analysis.

Discuss the possible causes of the variances that you have calculated in Part A