Thas been running an electronics manufacturing business for a long time. The company uses Direct Labor Hours as a cost driver for applying overheads to different products. For the following INDEPENDEDNT situations, identify which variances would likely occur and would they be favorable (write 'F'), unfavorable (write 'U') or there would be no effect on that variance (write 'NE'). Assume that in every situation, everything else remains constant. Direct Materials Price Variance - For UF or NE Direct Materials Quantity Variance - For UF or NE Labor Rate Variance - For UF or NE Labor Efficiency Variance - For UF or NE Variable Overhead Rate Variance - For UF or NE Variable Overhead Efficiency Variance - For UF or NE 1. Cheap, low cost material is purchased resulting in workers having to re-work on several televisions, and wastage of materials and machine time. 2. Surprisingly, government reduced electricity prices. 3. The workers union successfully negotiated increase in wages. This was not planned! 4. There was a sudden surge in demand. The company had to pay higher than normal wages to get the work done during overtime. 5. The government increased tax on import of critical components used in production. 6. The company hired graduate of SDSB as purchasing manager who could calculate EOQ properly , resulting in getting discounts from suppliers that the company had never enjoyed. 7. The company hired an SDSB graduate who outsourced factory building maintenance to a friend's company which charged higher than the previous contractor. 8. The company produced less than anticipated. 9. The standards company uses for variance analysis have not been adjusted for inflation for a few years. 10. The company increased marketing efforts in a bid to increase sales