The following outcomes were noted for ABC Ltd using standard costing and variance analysis.

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The following outcomes were noted for ABC Ltd using a standard costing and varianceanalysis system.Material Price 3 500Material Usage 8 300Wage Rate 44 000Labour Efficiency 52 000Material price variance – adverseMaterial usage variance – favourableWage rate variance -favourableLabour efficiency variance- adverseThe company cooperates a standard costing system. Assess the performance of the Production Manager using the figures above and identify and critically evaluate the possible causes of the variances noted above for ABC Ltd. You can make assumptions on the businesses operations in explaining possible causes.

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