Read each statement below (a through h). Then, write a 1-2-page analysis identifying what might cause these variances in a standard cost summary for materials, labor, and factory overhead. In addition, analyze, from a manager's perspective, how each variance could be corrected and explain why.
An unfavorable materials price variance.
A favorable materials price variance.
An unfavorable materials quantity variance.
A favorable materials quantity variance.
An unfavorable labor rate variance.
A favorable labor rate variance.
An unfavorable labor efficiency variance.
A favorable labor efficiency variance.