The executive team atCurrent Designshas gathered to evaluate the company's operations for the last month. One of the topics on the agenda is the special order from Huegel Hollow, which was presented in CD2. Recall that Current Designs had a special order to produce a batch of30kayaks for a client, and you were asked to determine the cost of the order and the cost per kayak.

Mike Cichanowski asked the others if the special order caused any particular problems in the production process. Dave Thill, the production manager, made the following comments: "Since we wanted to do this order quickly and make a good first impression on this new customer, we had some of our most experienced type I workers run the rotomold oven and do the trimming. They were very efficient and were able to complete that part of the manufacturing process even more quickly than the regular crew. However, the finishing on these kayaks required a different technique than what we usually use, so our type II workers took a little longer than usual for that part of the process."

Deb Welch, who is in charge of the purchasing function, said, "We had to pay a little more for the polyethylene powder for this order because the customer wanted a color that we don't usually stock. We also ordered a little extra since we wanted to make sure that we had enough to allow us to calibrate the equipment. The calibration was a little tricky, and we used all of the powder that we had purchased. Since the number of kayaks in the order was fairly small, we were able to use some rope and other parts that were left over from last year's production in the finishing kits. We've seen a price increase for these components in the last year, so using the parts that we already had in inventory cut our costs for the finishing kits."

Based on the comments above, predict whether each of the following variances will be favorable or unfavorable. If you don't have enough information to make a prediction, use "Not Enough Information."

1.Quantity variance for polyethylene powder.

Not Enough Information

Favorable

Unfavorable

2.Price variance for polyethylene powder.

Not Enough Information

Favorable

Unfavorable

3.Quantity variance for finishing kits.

Not Enough Information

Favorable

Unfavorable

4.Price variance for finishing kits.

Favorable

Unfavorable

Not Enough Information

5.Quantity variance for type I workers.

Unfavorable

Favorable

Not Enough Information

6.Price variance for type I workers.

Unfavorable

Favorable

Not Enough Information

7.Quantity variance for type II workers.

Favorable

Unfavorable

Not Enough Information

8.Price variance for type II workers.

Favorable

Unfavorable

Not Enough Information

Diane Buswell examined some of the accounting records and reported that Current Designs purchased1,860pounds of pellets for this order at a total cost of $3,162.30finishing kits were assembled at a total cost of $4,980. The payroll records showed that the type I employees worked86hours on this project at a total cost of $946. The type II finishing employees worked129hours at a total cost of $1,096.50. A total of30kayaks were produced for this order.

The standards that had been developed for this model of kayak were used in CD2 and are reproduced here. For each kayak:

58pounds of polyethylene powder at $1.50per pound1 finishing kit (rope, seat, hardware, etc.) at $1723hours of type I labor from people who run the oven and trim the plastic at a standard wage rate of $11per hour

4hours of type II labor from people who attach the hatches and seat and other hardware at a standard wage rate of $8per hour.

Calculate the eight variances that are listed below.(Round price variance for type II workers to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 25.)

Quantity variance for polyethylene powder$

Unfavorable

Favorable

Neither favorable nor unfavorable

Price variance for polyethylene powder$

Favorable

Neither favorable nor unfavorable

Unfavorable

Quantity variance for finishing kits$

Neither favorable nor unfavorable

Unfavorable

Favorable

Price variance for finishing kits$

Favorable

Unfavorable

Neither favorable nor unfavorable

Quantity variance for type I workers$

Favorable

Neither favorable nor unfavorable

Unfavorable

Price variance for type I workers$

Neither favorable nor unfavorable

Favorable

Unfavorable

Quantity variance for type II workers$

Unfavorable

Favorable

Neither favorable nor unfavorable

Price variance for type II workers$

Favorable

Unfavorable

Neither favorable nor unfavorable