Assignment 3 Variance Analysis Josephine needs some additional assistance. She has compared her budget to what actually happened this year. She sees there are differences but she is unsure why there are differences. She has included the amount she budgeted to include the standard costs and actual costs. She believes you can determine the differences and explain them so she can make any necessary changes. Her budget for materials was $45,000. She determined this by assuming she would pay $.11 per ounce and would need 272,727 oz. of material. Her actual cost for materials was $.10 per ounce and she used 271,500 oz. She would like to know the total variance and how much was because she spent a different amount per ounce and how much was due to using a different amount of material. She budgeted $55,050 for labor. She budgeted based on paying the bakers $10.20 per hour and taking 5,000 hours. Her actual wages were $54,750. She actually paid $10.79 per hour and her bakers worked 5,075 hours. She would like for you to determine the total variance and how much was due to what she paid per hour and how much was due the time it took to bake the donuts. Your assignment is to write her a professional memo explaining to her the material quantity variance, material price variance, labor efficiency variance, and labor rate variance. Let her know which variances are favorable and unfavorable. Explain what each is and how it is calculated in layman's terms