Tawanda's Bakery uses variances to help control production-related costs. The following data summarize the production activity for June:

During the month, Tawanda produced 20 batches.
Calculate each of the following and determine whether the variance is favorable or unfavorable:

a. materials price variance

c. labor rate variance

b. materials quantity variance

d. labor efficiency variance At what level within an organization is variance analysis useful to support decision making? Explain.

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Materials Labor Materials Labor Standard resource consumption per 50-loaf batch 60 lbs. at $2.00 per pound 3 hours at $16.00 per hour Actual resource consumption during June 1,100 lbs. at $2.10 per pound 80 hours at $15.00 per hour