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What may have caused the price

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During June, the Conchran Manufacturing 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 favorable or unfavorable. The following information is for the manufacture of garden gates, its only product.

(1) Direct materials price variance, $800 unfavorable.

(2) Direct materials efficiency variance, $1,800 favorable.

(3) Direct manufacturing labor price variance, $4,000 favorable.

(4) Direct manufacturing labor efficiency variance, $600 unfavorable.

Question 1: Provide the manager with some ideas as to what may have caused the price

Reference no: EM132552835

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