The Standard Costing Variance Explainer

Calculate and explain the standard cost variances for this period.

Standards: [STANDARD PRICE/QTY FOR MATERIALS, RATE/HOURS FOR LABOUR]
Actuals: [ACTUAL PRICE/QTY, RATE/HOURS, OUTPUT]

Compute and interpret:
1. Materials price variance and materials usage variance
2. Labour rate variance and labour efficiency variance
3. What each variance is telling me about purchasing, operations, or the
   standard itself
4. Whether the standards look realistic or need resetting
5. The one variance I should investigate first, and the likely cause

Show the formulas and keep the interpretation in operational terms a plant
manager would recognise.