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

Essay

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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