Answer the next TWO questions based on the scenario mentioned here:

Scenario 3: We budgeted a total machine cost of $368,250 for 7,000 machine hours to make 35,000 units. We paid $382,650 for 7,290 machine hours to make 37,000 units.

Question 401 pts

Indicate whether each of the variances below is Favourable or Unfavourable for Scenario 3:

price/rate variance [ Select ] ["Favourable", "Unfavourable"]

usage/efficiency variance [ Select ] ["Favourable", "Unfavourable"]

Flag question: Question 41

Question 415 pts

Explain to your boss/CEO what the numbers in Scenario 3 are telling us in terms of price/rate and usage/efficiency variances, the possible reason(s) behind the variances, and whether the firm (Simple Jeans) has made the right decision or not.

Reminder: your boss/CEO wants a concise response straight to the point (and not a long essay).