During June, the Conchran Manufacturing Company's costing system reported several variances that the production manager was surprised to see. Most of the company's monthly variances are under $125, even though they may be either favorable or unfavorable The following information is for the manufacture of garden gates, its only product Direct materials price variance, $800 unfavorable. Direct materials efficiency variance, $ 1,800 favorable. Direct manufacturing labor price variance, $4,000 favorable Direct manufacturing labor efficiency variance, $600 unfavorable Provide the manager with some ideas as to what may have caused the price variances Eric Segal has just purchased the film studio of a movie company that specializes in love stories The company did not try to estimate the cost of making a movie Instead, it just gave the producer a budget and told him or her to make a mode within budget. Mr. Segal does not like the former movie-budget concept and desires to establish a formal cost estimation system What are alternative methods of cost estimation that could be used in the movie making system? Briefly describe each method Claudia Geer, controller, discusses the pricing of a new product with the sales manager, James Nolan What are the two alternative long-run pricing approaches that Claudia and James must consider in pricing the new product? Discuss briefly which approach would be more appropriate for competitive, less competitive, and non competitive markets Which two capital budseting methods use discounted cash flow? How would you determine which one to use