Current Attempt in Progress Monte and Mabel are in charge of variance analysis at Mason Manufacturing, Inc. Both have been in their positions for 3 years, and neither one has ever seen a significant utility cost difference (actual versus budget) until the last 2 months. In their efforts to dig into this unexpected increase in cost, they gathered the following information: Specific Utility Costs to Be Explained 1. Electricity (used for lights, equipment, and air conditioning) 2. Natural gas (used only for heat in the cooler months) 3. Water (used primarily to clean factory equipment and operate restrooms, sink in break room)

Monte and Mabel are in charge of variance analysis at Mason Manufacturing. Inc. Both have been in their positions for 3 years, and neither one has ever seen a significant utility cost difference (actual versus budget) until the last 2 months. In their efforts to dig into this unexpected increase in cost, they gathered the following information: Specific Utility Costs to Be Explained 1. Electricity (used for lights, equipment, and air conditioning) 2. Natural gas (used only for heat in the cooler months) 3. Water (used primarily to clean factory equipment and operate restrooms, sink in break room) Possible Cost Drivers 3. Number of machine hours used b. Number of employees in the factory c. Number of units produced d. Number of salespeople e. Outside temperature Match each of the possible cost drivers with the type of utility cost that it might help explain. Some may match multiple costs: some may not match any costs. Explain why you belleve a given cost driver would help explain a given cost. What other possible cost drivers can you think of that might also (or better) explain electricity cost? Natural gas cost? Water cost? eTextbook and Media Do you believe the cost drivers you matched with a given cost in part (a) have a clear cause-and-effect relationship with that given cost? If so, explain why. If not, explain what kind of relationship it might have