Kenji was closing up shop for the season and for the fiscal year-end, as well. Managers had carefully evaluated the company's performance, comparing the actual results to budget. They even dug a little deeper into the flexible budget variances to determine the respective price and efficiency (or volume) variances. The following shows the framework used to determine these variances- although you'll notice that they neglected to label the differences. DM DL Variable-MOHI Fixed MOH Actual Cost $66.250 86,700 40,100 Unnamed Column $67,400 84,120 41.680 Flexible Budget $65,800 82,900 43,400 Actual Cost Master Budget Applied Fixed-MOH $52,000 $50,000 $51.500 Were any of the individual variances significant? (Assume that the company defines significant as reflecting at least 5% of the flexible budget cost for that resource.) Were the total combined variances a significant portion of Kenji's COGS balance? Price variance Efficiency variance Price variance Volume variance DM $1.150 Favorable $1,600 Unfavorable Fixed-MOH $2.000 Unfavorable $1,500 Favorable. eTextbook and Media B 1 S T, T' LE E E DL Variable-MOH $2,580 Unfavorable $1,580 Favorable $1,220 Unfavorable $1.720 Favoral 99 If you were the owner of Kenji's, would you pay close attention to these variances? Why or why not? Explain to what extent you might use them to inform next year's budgeting and goal-setting process. B / VT, TIEEJ == 99 = | oWord(s)