The following direct materials and direct labour data is available for Michael Ltd for the month of November:

--------------- Costs ------------------------ Quantities------=

Actual labour rate $13 per hour Actual hours incurred

and used 4,250 hours

Actual materials Actual quantity of materials

price $128 per tonne purchased and used 1,250 tonnes

Standard labour rate $12 per hour standard hours for October

production 4,300 hours

Standard materials Standard quantity of materials

price $130 per tonne October production 1,200 tonnes

Requirements:

(a) Calculate the total, price, and quantity variances for labour. (Marks 5)

(b) Calculate the total, price, and quantity variances for materials. (Marks 5)

(c) Provide a possible explanation for each of the variances calculated. (Marks 5)