Part A: Assume that there is a single cause of all of the variances in Part A. State the most likely cause, and briefly explain how it possibly caused the other variances.

Material Rate	30,000 F
Material Efficiency	20,000 U
Labour Price	immaterial
Labour Efficiency	15,000 U
Variable Overhead Rate	immaterial
Variable Overhead Efficiency	22,962U
Fixed Overhead Flexible Budget	immaterial
Fixed Overhead Production Volume	immaterial

Part B: Assume you are the manager of a company that installs floor tiles. The Covid pandemic has resulted in a huge increase in potential customers. In order to meet this increased demand, you purchase several new tile saws that can cut more accurately and faster. Because of this new tile saws, you can purchase slightly lower quality tiles. Labour costs per hour remains the same. The new tile saw requires the same amount of indirect material per hour as the old saw. Overhead is allocated based on Direct Labour Hours.

For each of the following variances, indicate if the new saw will create a favourable variance, unfavourable variance or no material variance.

1. Material Price/Rate
2. Material Efficiency
3. Labour Price/Rate
4. Labour Efficiency
5. Variable Overhaed Rate
6. Variable Overhead Efficiency
7. Fixed Overhead Rate
8. Fixed Overhead Production Volume