Affect the Affect Usage Is There a Price Va riance? Corrective Variance? ' Action? The company predicted that the price of. [Favorable] [Favorable] [Yes] materials would Increase so the purchasing January maria er decided to bu several months of [Unfavorable] [Unfavorable] 3. 7" . [No Effect X] [No Effect X] [No] materials before the price Increase. [Favorable] [Favorable] [Yes] February Employees were paid their annual bonus in [Unfavorable] [Unfavorable] February. [No Effect X] [No Effect X] [No] A batch of supplies were received that were of slightly lower quality. The production [Favorable] [Favorable] [Yes] March department was able to use them slowly along [Unfavorable] [Unfavorable] with good supplies so that the company did not [No Effect X] [No Effect X] [No] need to write off the inventory or make returns. In April the clerk in accounting made an input [Favorable] [Favorable] [Yes] error and as a result records showed that that t _ l th t l dd d t th [Unfavorable] [Unfavorable] more ma eria an ac ua Ewas a e o e [No Effect] [No Effect] [No] production process. April Supplies are usually delivered by rail but there [Favorable] [Favorable] [Yes] . . [Unfavorable] [Unfavorable] was a shutdown In the railroad and now [N Eff t] [N Eff t] [N ] supplies must come by truck for 2 months, 0 cc 0 ec 0 starting in April, which is more expensive. The input error from April reversed. [Favorable] [Favorable] [Yes] Ma [Unfavorable] [Unfavorable] y [No Effect] [No Effect] [No] Our materials supplier, which was our only [Favorable] [Favorable] [Yes] materials supplier, had a temporary outage that [Unfavorable X] [Unfavorable] lasted through June and at the last minute we [No Effect] . . [No Effect] [No] had to find a temporary (emergency) supplier. Since it was last minute, the supplier charged June remium ricin and had to ex edite shi in p p g p pp 3. [Favorable] [Yes] [Favorable] . . [Unfavorable] A major equipment purchase was planned for [Unfavorable] [No Effect] [No] June but was delayed until August. [No Effect] Man of our em lo ees took vacation to en'o [Favorable] [Favorable] [Yes] July sumiiher activitieps V J Y [Unfavorable] [Unfavorable] ' [No Effect] [No Effect] [No] Our supplier informed purchasing that they . . _ [Favorable] [Favorable] [Yes] were going to halt production for maintenance August and re uested that our com an take a two [Unfavorable] [Unfavorable] q , p Y [No Effect] [No Effect] [No] month supply of materials now. Union negotiations were in full swmg, and the [Favorable] [Favorable] production manager noted that employees [Yes] . . . [Unfavorable] [Unfavorable] seemed a bit disgruntled. He also noticed that , I i [No Effect] [No Effect] they were taking more personal breaks and [No] seemed less conscientious about the quality of S t b their work. The production manager also said ep em er that it seemed like there was more waste. Y . , . . [Favorable] [Favorable] [ es] Material purchase price for the containers is , . . . [Unfavorable] [Unfavorable] based on a contract tied to the price of Oll. Oil [No] . . . [No Effect] [No Effect] prices declined during the months of September and October. OPEC is meeting this month to negotiate supply [Favorable] [Favorable] [Yes] October levels of oil for the followin ear [Unfavorable] [Unfavorable] g V ' [No Effect] [No Effect] [No] Toward the end of November, due to the deteriorating efficiency of the production [Favorable] [Favorable] [Yes] machinery it was decided to take a plant outage November and accelerate the maintenance originally [Unfavorable] [Unfavorable] scheduled for March of the following year. [No Effect] [NO Effect] [NO] The plant started back up in early December [Favorable] [Favorable] [Yes] December and the maintenance performed in November [Unfavorable] [Unfavorable] appears to have resolved the efficiency issues. [No Effect] [No Effect] [No]