Anna's Shoes	Actual	R&S Variances	Flexible Budget	Activity Variance	Planning Budget
Clients	1100		1100		1000
Revenue	$194,000.00	$3,800 U	$198,000.00	$18,000.00 F	$18,000.00
Expenses
Wages and Salaries ($65,000 + $37.00q)	$106,900.00	$1,200 U	$105,700.00	$3,700 U	$12,000
Product	1620	30 F	1650	150 U	1500
Gifts	$ 6,870.00	$2,360 U	$4,510.00	$410 U	$4,100.00
Electricity ($1,500 = $0.10q)	$1,550.00	60 U	$1,610.00	10U	$1,600.00
Rent	$28,500.00	0	$28,500.00	0	$28,500.00
Liability Insurance	$2,800.00	0	$2,800.00	0	$2,800
Employee Health Insurance	$22,600.00	$1,300 U	$21,300.00	0	$21,300
Miscellaneous ($1,200 = $0.20q)	$2,130.00	$710,00 U	$1,420.00	$20 U	$1,400
Total Expenses	$172,970.00	$5,480 U	$167,490.00	$4,290 U	$163,200
Net Operating Income	$21,230.00	$9,280 U	$30,510.00	$13,710 F	$16,800.00

Base on the data above please answer the following questions:

What is the quantity standard and the price standard in your peers example?

What effect, if any, would you expect poor-quality materials to have on direct labor variances?

If variable manufacturing overhead is applied to production on the basis of direct labor-hours and the direct labor efficiency variance is unfavorable, will the variable overhead efficiency variance be favorable or unfavorable? Could it be either?