The following direct materials and direct labour data are for the operations of Batista Manufacturing Company for the month of August:

Instructions
(a) Calculate the total, price, and quantity variances for materials and labour.
(b) Provide two possible explanations for each of the unfavourable variances calculated in part (a), and suggest which department might be responsible for the unfavourable result.

Costs Quantities Actual labour rate S13.00 per hour Actual hours incurred and used Actual quantity of materials 3,200 hours Actual materials price Standard labour rate Standard materials price $89.00 per tonne $12.00 per hour $90.00 per tonne purchased and used Standard hours used Standard quantity of materials used 910 tonnes 3,240 tonnes 900 tonnes