A company produces a product which has a standard variableproduction cost of $8 per unit made up as

follows:

                                                               $Per Unit

Directmaterial                                 $4.60(2kg X $2.30 per kg)

Direct labour                                    $2.10(0.7 hours x $3.00 per hour)

Variable overhead                         $1.3

Fixed manufacturing costs are treated as period costs. Thefollowing information is available for the period just ended,

Variable manufacturing cost of sales (at standardcost)                                  $263,520

Opening stock of finished goods (at standardcost)                                         $120,800

Closing stock of finished goods (at standardcost)                                          $146,080

Direct material pricevariance                                                                          $2,571U

Raw materials used in manufacture (at actualcost)                                        $170,310

Direct labour rate variance                                                                              $4,760U

Direct labour efficiency variance                                                                     $3,240F

Required:

(a)   Determine for the period ended.

(i)              Thetotal actual direct labour cost, and

(ii)              Theactual cost per kg of raw material used.

(b)   Outline the possible causes of the rawmaterials variances