6 variances

Editing Voice Seng Paragraph Styles Weekly Check-in Assignment #11 Due at 11:59 p.m. on Sunday, November 7, 2021 In chapter 10 we discussed the following six (6) variances: 1. Direct materials price variance 4. Direct labor efficiency variance 2. Direct materials quantity variance 5. Variable overhead rate variance 3. Direct labor rate variance 6. Variable overhead efficiency variance For the following descriptions, state which variance would be the PRIMARY variance (that is, the one you know for sure will happen) and whether the variance would be favorable (F) or unfavorable (U). Use the numbers listed above for your answers. Remember, you are answering this for the PRIMARY variance. I did the first couple of ones for you to show you what I mean. I included an explanation. You do not have to include an explanation. Variance number U or F 3 F I 4 U In the past, the 10 people employed in the production of product XYZ consisted of 4 senior workers and 6 assistants. During March the company experimented with 3 senior workers and 7 assistants. Note: this one could have two correct answers (but one is more correct than the other IMHO). Name them both. Explanation: The senior workers will be more expensive so if we use fewer senior workers, we will save money and will FOR SURE have a favorable direct labor RATE variance. The senior workers are more skilled so if we use fewer senior workers then we MOST LIKELY will have an unfavorable direct labor efficiency variance. Poor quality materials were purchased by the purchasing department. (Remember, PRIMARY variance!) Explanation: Poor quality materials will be cheaper than higher quality materials so we will save money and will FOR SURE have a favorable direct materials PRICE variance. The poor quality materials will likely have an adverse impact on the direct materials quantity variance because we will have to use more, but that wouldn't be the primary variance, it would be the secondary variance. Scheduled maintenance is not taking place. (Remember, PRIMARY variance!) 1 F D.Focus 415 words Text Predictions: On 63% lu . Bb I DEI 43F Type here to search U money and will FOR SURE have a favorable direct labor RATE variance. The senior workers are more skilled so if we use fewer senior workers then we MOST LIKELY will have an unfavorable direct labor efficiency variance. Poor quality materials were purchased by the purchasing department. (Remember, PRIMARY variance!) Explanation: Poor quality materials will be cheaper than higher quality materials so we will save money and will FOR SURE have a favorable direct materials PRICE variance. The poor quality materials will likely have an adverse impact on the direct materials quantity variance because we will have to use more, but that wouldn't be the primary variance, it would be the secondary variance. Scheduled maintenance is not taking place. (Remember, PRIMARY variance!) 1 F The factory used less fuel for heating than originally planned because of a warmer-than-normal winter. Because of poor planning for the purchase of materials, the materials were shipped via air instead of the more cost efficient ground transportation. In making curtains, a company actually used 4 yards of material for each curtain. The standard was 4.5 yards. Union negotiations raised the wages for all factory line workers. Standards are not adjusted to reflect this change. Rubric: Each box is worth 1 point