For the following scenarios, choose favorable or unfavorable and labor or materials and cost or efficiency$$that is$,$ choose one of each$$three in total$$that describes the scenario.

Scenario $1$ The production manager of a company, in an effort to gain a promotion, negotiated a new labor contract with the factory employees that required them to bear a greater percentage of benefit costs than before, thus bringing down the cost of direct labor to the company. Shortly afterward, several experienced and highly skilled workers resigned, and were replaced by new employees whose work was very slow during their training period. At the end of the quarter, the company's profits fell $10\%.$

This

would produce a$($n$)\_\_\_\_\_\_\_\_$ variance.

Scenario $2$ A company$$s production department was experiencing a high defect rate on the assembly line, which was slowing down production and causing wastage of valuable direct materials. To address this situation the production manager recruited some highly skilled production workers from another company in an attempt to bring down the defect rate but the higher wages demanded by these workers

adversely affected operating income. This would produce a$($n$)\_\_\_\_\_\_\_\_$ variance.

TRUE or FALSE

$1)$ Managers generally have more control over price variances than efficiency variances.

$2)$ The essence of variance analysis is to capture a departure from what was expected.

$3)$ If actual expenses are less than expected expenses, the expense variance will be unfavorable.

$4)$ A variance is the difference between the actual cost for the current and expected $($or budgeted$)$

performance