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Is any connection between the variances

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Reference no: EM132743698

For the quarter just ended, BoSan Pty Ltd reported the following variances in one of its manufacturing departments:

Material price variance             Unfavourable

Material quantity variance          Favourable

Labour efficiency variance       Favourable

Labour rate variance                  Negligible

Problem 1: The sum of the favourable variances above exceeded the unfavourable materials price variance by a considerable amount. The quality of the output from the department was the same as usual. Practically all of the raw material used in this quarter was purchased in this quarter. Is there any connection between these variances? If so, explain

Reference no: EM132743698

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