Identify the type of variance indicated by each ot the following situations and indicate whether it is favorable or unfavorable;

a. The cutting department of a company during the week ending July 15 cut 12 size-S cogged wheels out of three sheets of 1 2-inch high-tempered steel.

Usually three wheels of such si/e arc cut out of each sheet.

b. A company purchased and installed an expensive new cutting machine to handle expanding orders.

This purchase and the related depreciation had not been anticipated when the overhead was budgeted.

c. Edwards, the band saw operator, was on vacation last week. Lands took her place for the norinal 40-

hour week. Edwards' wage rale is .SI 2 per hour, while Land.s" is $10 per hour. Production was at capacity last week and the week before. mk5