Early in September of this year, Jose Company's long-time supplier, the Lanae Company, was closed unexpectedly because of a labor strike. Jose was forced to seek a backup supply source. After considerable delay, raw materials were obtained, but they were of significantly lower quality than those Lanae provided, and they were more expensive because of special handling required to rush the orders. The delay created an unusual increase in idle time during the month; and once production resumed, the poor quality raw materials produced reductions in labor and machine productivity and increases in materials waste. Noticing a decline in employee morale, the plant manager decided to provide a company-sponsored employee picnic at the end of the month. By the beginning of October, Lanae Company employees were back to work and Jose's operations were back to normal. Required: Identify factors from the problem that would likely cause the Jose Company to experience unfavorable variances. Indicate which of the following variance(s) was most likely affected by the factors identified in your answer.

*	Materials price variance
*	Materials quantity variance
*	Labor efficiency variance
*	Variable overhead spending variance
*	Variable overhead efficiency variance
*	Fixed overhead budget variance