a) Complete the following table of variances and their formulas:

	Equation:	Measures:
Sales activity variance:
Profit variances:
Sales price variance
Manufacturing variances:
Materials price variance
Materials quantity variance
Labor rate variance
Labor efficiency variance

b) True or false?

Favorable variances are always positive amounts?

Is a positive amount in a cost variance a good thing? Why or why not?

Is a positive amount in a revenue variance a good thing? Why or why not?