During February the Lungren Manufacturing Company's costing system reported several variances that the production manager was surprised to see. The following information is for the manufacture of garden gates, its only product:
1. Direct materials price variance, $800 unfavourable.
2. Direct materials efficiency variance, $1,800 favourable.
3. Direct manufacturing labour price variance, $4,000 favourable.
4. Direct manufacturing labour efficiency variance, $600 unfavourable.
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?

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The Answer of During February the Lungren Manufacturing Company's costing system reported several variances that the production manager was surprised to see. The following information is for the manufacture of garden gates, its only product:
1. Direct materials price variance, $800 unfavourable.
2. Direct materials efficiency variance, $1,800 favourable.
3. Direct manufacturing labour price variance, $4,000 favourable.
4. Direct manufacturing labour efficiency variance, $600 unfavourable.
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?

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