During February the Lungren Manufacturing Company's Costing System Reported Several

Essay

During February the Lungren Manufacturing Company's costing system reported several variances that the production manager was surprised to see. Most of the company's monthly variances are under $125, even though they may be either favorable or unfavorable. The following information is for the manufacture of garden gates, its only product:
1.Direct materials price variance, $800 unfavorable.
2.Direct materials efficiency variance, $1,800 favorable.
3.Direct manufacturing labor price variance, $4,000 favorable.
4.Direct manufacturing labor efficiency variance, $600 unfavorable.
Required:
a.Provide the manager with some ideas as to what may have caused the price variances.
b.What may have caused the efficiency variances?