Reference no: EM132638896

You're working as an accounting analyst with a large manufacturing company, Bolton & Sons, Inc., when your manager comes to you with a request. The CFO is very concerned about the manufacturing variances from the previous month which are as follows:

Material price variance $7,300 (unfavorable)

Material efficiency variance $2,000 (favorable)

Labor rate variance $6,200 (unfavorable)

Labor efficiency variance $1,500 (unfavorable)

Variable overhead efficiency variance $2,400 (unfavorable)

Variable overhead spending variance $2,900 (favorable)

Fixed overhead spending variance $3,600 (favorable)

Production-volume variance $4,700 (unfavorable)

The CFO doesn't understand why these numbers are "all over the place." You have been placed in charge of the research, analysis, and explanation of these variances.

Question 1: Explain following associate with each variance:

1. Causes or drivers of the variance
2. Other departments or employees that you consulted for information 
3. Any plans to adjust or combat these variances moving forward