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can you please solve all of problme number 7 a-e please. this is all that is needed for this problem! 7) For this question, only
can you please solve all of problme number 7 a-e please.
this is all that is needed for this problem! 7) For this question, only consider the four variances (ONLY Variances for material and labor) (1) Materials Price Variance, (2) Material Quantity Variance (3) Labor Rate Variance, and (4) Labor Efficiency Variance. Answer the questions relating to each situation below. Note: YOU MUST CALCULATE A DOLLAR VALUE to estimate the effect on the variance. a) Situation A: One of Phoenix Company's full-time employees took an extended sick leave amounting to 160 hours. A temporary employee was hired at $14.50 an hour as a replacement i) Which of the 4 variances was impacted? in) Would the situation impact the variance Favorable or Unfavorable? iii) Estimate of impact. Show your work for partial credit. b) Situation B: Power outages occurred three times during the year in which all production was shut down for 2 hours the first time, 3 hours the second time, and I hour the third time. During these times, 4 workers remained on site, but no work was performed 1) Which of the 4 variances would this situation impact? in) Would the situation impact the variance Favorable or Unfavorable? ii) Estimate of impact. Show your work for partial credit c) Situation C: An order of raw material was received damaged, presumably during shipping. The order contained enough raw material to produce 200 finished goods. Upon inspection, 8% of the raw material was deemed contaminated and not usable 1) Which of the 4 variances would this situation impact? ii) Would the situation impact the variance Favorable or Unfavorable? in) Estimate of impact. Show your work for partial credit. d) Situation D: The purchasing department was able to negotiate a $1,200 discount from the supplier for the damaged order from c) above. i) Which of the 4 variances would this situation impact? ii) Would the situation impact the variance Favorable or Unfavorable? iii) Estimate of impact. e) Using the information for C and D, do you think purchasing did well with its negotiation of the discount? Explain in 20 to 40 words
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