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Travel All, Inc. has 4 divisions. One division, the Travel Containers division has one plant that produces travel mugs of varying shapes and sizes. The

image text in transcribed Travel All, Inc. has 4 divisions. One division, the Travel Containers division has one plant that produces travel mugs of varying shapes and sizes. The variance exception report for the third quarter is presented below of the travel mug production facility. Travel All requires plant managers to explain variances that are more than 5% off of expected variances based on standard costs. The four variances listed below fell outside of the 5% level and therefore the plant manager, Candace Carr, needs to provide an explanation of why those variances occurred. About 60% of the plant workers take vacation in either July or August and during these months the plant supervisor typically brings in contract workers under short term contractors varying anywhere from one week to two-month contracts. Candace handled the situation only slightly differently. While she relied heavily on contract workers in July, during August she was able to hire several retirees on a short-term basis. These retirees had previously worked in the plant, and most had only retired within the last two years. One of the two molding machines that the company uses to mold the exteriors of the mugs was malfunctioning for the first week of August and was completely down for repairs during the second week of August. The head purchaser for the travel mug components learned in early September of a fire at one of its major supplies facilities and had to quickly source that component from another supplier. Using the information above and the information in the table, complete the "explanation" column explaining why theses variance (or the trend in each of these variances) might have occurred

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