Based on your knowledge of traditional cost accounting system and

related analytical tools discussed in class:

Identify for each of the presented years, whether the variances

used to adjust the standard Cost of Sales are favorable or

unfavorable.

Provide a brief explanation of the noted change in variances above

over the presented years.

How is this solved? can you please explain

		Current Year	Previous Year	Explanation
	Material Price Variance	(3,000)F	10,000 U
	Material Usage Variance	(2,000) F	5,000 U
	Labour Efficiency Variance	7,000 U	(8,000) F
	Labour Rate Variance	(2,000) F	9,000 U
	Overhead Volume Variance	2,000 U	2,000 U
	Overhead spending variance	(2,000) F	8,000 U
	Overhead Efficiency Variance	16,000 U	(17,000) F