Question: Answer the next TWO questions based on the scenario mentioned here: Scenario 1: We budgeted 38,500 sqm of materials at a standard price of $14

Answer the next TWO questions based on the scenario mentioned here:

Scenario 1: We budgeted 38,500 sqm of materials at a standard price of $14 per sqm to make 22,000 units. We actually used 31,940 sqm at an actual price of $14.75 to make 20,500 units.

Question 361 pts

Indicate whether each of the variances below is Favourable or Unfavourable for Scenario 1:

price/rate variance [ Select ] ["Favourable", "Unfavourable"]

usage/efficiency variance [ Select ] ["Favourable", "Unfavourable"]

Flag question: Question 37

Question 375 pts

Explain to your boss/CEO what the numbers in Scenario 1 are telling us in terms of price/rate and usage/efficiency variances, the possible reason(s) behind the variances, and whether the firm (Simple Jeans) has made the right decision or not.

Reminder: your boss/CEO wants a concise response straight to the point (and not a long essay).

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