During February the Mossman Engineering Company's costing system reported several variances that the production manager was surprised to see.Most of the company's monthly variances are under $125,even though they may be either favourable or unfavourable.The following information is for the manufacture of garage doors,its only product:
1.Direct materials price variance,$800 unfavourable.
2.Direct materials efficiency variance,$1800 favourable.
3.Direct manufacturing labour price variance,$4000 favourable.
4.Direct manufacturing labour efficiency variance,$600 unfavourable.
Required:
a.Provide the manager with some ideas as to what may have caused the price variances.
b.What may have caused the efficiency variances?
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The Answer of During February the Mossman Engineering Company's costing system reported several variances that the production manager was surprised to see.Most of the company's monthly variances are under $125,even though they may be either favourable or unfavourable.The following information is for the manufacture of garage doors,its only product:
1.Direct materials price variance,$800 unfavourable.
2.Direct materials efficiency variance,$1800 favourable.
3.Direct manufacturing labour price variance,$4000 favourable.
4.Direct manufacturing labour efficiency variance,$600 unfavourable.
Required:
a.Provide the manager with some ideas as to what may have caused the price variances.
b.What may have caused the efficiency variances?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

During February the Mossman Engineering Company's Costing System Reported Several