Purdue Inc. manufactures tires for large auto companies. It uses standard costing and allocates variable and fixed manufacturing overhead based on machine-hours.

REQUIRED

For each independent scenario given, indicate whether each of the manufacturing variances will be favourable or unfavourable or, in case of insufficient information, indicate "cannot be determined."

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Variable Overhead Overhead Overhead Efficiency Variance Variable Fixed Overhead Production- Volume Variance Fixed Rate Variance Rate Scenario Variance Production output is 5% more than budgeted, and actual fixed manufacturing overhead costs are 6% more than budgeted Production output is 10% more than Ll actual machine-hours are Production output is 8% less than Actual machine hours are 15% Relative to the flexible budget, actual 5% less than budgeted budgeted than flexible-budget machine-hours greater machine-hours are 10% greater, and acual variable manufacturing overhead costs are 15% greater