Old Rose Nursery Sells Over 100 Varieties of Floribunda and Hybrid

Old Rose Nursery sells over 100 varieties of floribunda and hybrid tea roses. Old Rose's accountant, Cynthia, recently calculated several variances for the nursery. Results are shown below:
Direct materials price variance $500 unfavourable
Direct materials efficiency variance 300 favourable
Direct labour price variance 800 favourable
Direct labour efficiency variance 250 favourable
Variable overhead efficiency variance 150 favourable
Variable overhead price variance 230 unfavourable
Fixed overhead spending variance 120 unfavourable
Fixed overhead production volume variance 130 favourable
a)Prior to calculating variances, Cynthia had to establish standard costs for each rose in the nursery. List three types of information she would need to calculate the direct labour efficiency variance. Also identify one reason why each type of information could vary over time.
b)Even though Cynthia carefully developed standards and monitored performance, Old Rose could still experience poor profitability. Give two reasons why this could happen.
c)Describe one way that Cynthia could use the direct labour efficiency variance to improve operations at the nursery.
d)Some of the variances in the table are related to one another. For example, a favourable direct labour efficiency variance and a favourable direct materials efficiency variance could indicate that skilled workers worked more quickly and used less direct material than was budgeted. Identify one other possible relationship between variances in the table.