Month	Total Variance	% Deviation Total Variance	Price Variance	% Deviation Price Variance	Usage Variance	% Deviation Usage Variance
January	$3,246.77 U	2.6842%	$1,432.37 U	1.1667%	$1,814.40 U	1.5000%
February	$3,179.98 U	2.7604%	$1,509.58 U	1.2917%	$1,670.40 U	1.4500%
March	$2,777.24 U	2.5830%	$1,271.96 U	1.1667%	$1,505.28 U	1.4000%
April	$8,136.00 U	9.4167%	$4,680.00 U	5.2083%	$3,456.00 U	4.0000%
May	$18.98 U	0.0271%	$3,522.98 U	5.2917%	$3,504.00 F	5.0000%
June	$8,501.38 U	13.6240%	$7,596.58 U	12.0000%	$904.80 U	1.4500%
July	$1,541.64 U	2.7687%	$706.44 U	1.2500%	$835.20 U	1.5000%
August	$1,617.83 U	2.7181%	$754.79 U	1.2500%	$863.04 U	1.4500%
September	$506.25 F	0.7031%	$2,306.25 F	3.1250%	$1,800.00 U	2.5000%
October	$251.46 F	0.3046%	$2,728.26 F	3.2083%	$2,476.80 U	3.0000%
November	$3,744.42 U	3.8240%	$1,296.42 U	1.2917%	$2,448.00 U	2.5000%
December	$877.92 F	0.7750%	$1,387.68 U	1.2500%	$2,265.60 F	2.0000%
Annual	$31,128.60 U	2.9830%	$19,124.28 U	1.8118%	$12,004.32 U	1.1504%

To make sure you werent missing anything, you also kept track of your reasoning for determining that the event would not have affected either the materials price or usage variance.

Month	Events	You are completing the process and making sure your thoughts are in order. You have all of the events listed in the Events column but decided to fill in the [No Effect] area when the event would not have affected the price or the usage variance. You provided a third column to keep track of your logic when you determined that the event would not have affected the respective variance(s).
		Affect the Price Variance?	Affect Usage Variance?	If you marked the No Effect area, please explain why there is no effect
January	The company predicted that the price of materials would increase so the purchasing manager decided to buy several months of materials before the price increase.	[No Effect]	[No Effect]
February	Employees were paid their annual bonus in February.	[No Effect]	[No Effect]
March	A batch of supplies were received that were of slightly lower quality. The production department was able to use them slowly along with good supplies so that the company did not need to write off the inventory or make returns.	[No Effect]	[No Effect]

April	In April the clerk in accounting made an input error and as a result records showed that that more material than actual, was added to the production process. Supplies are usually delivered by rail but there was a shutdown in the railroad and now supplies must come by truck for 2 months, starting in April, which is more expensive.	[No Effect] [No Effect]	[No Effect] [No Effect]
May	The input error from April reversed.	[No Effect]	[No Effect]
June	Our materials supplier, which was our only materials supplier, had a temporary outage that lasted through June and at the last minute we had to find a temporary (emergency) supplier. Since it was last minute, the supplier charged premium pricing and had to expedite shipping. A major equipment purchase was planned for June but was delayed until August.	[No Effect] [No Effect]	[No Effect] [No Effect]
July	Many of our employees took vacation to enjoy summer activities.	[No Effect]	[No Effect]
August	Our supplier informed purchasing that they were going to halt production for maintenance and requested that our company take a two-month supply of materials now.	[No Effect]	[No Effect]

September	Union negotiations were in full swing and the production manager noted that employees seemed a bit disgruntled. He also noticed that they were taking more personal breaks and seemed less conscientious about the quality of their work. The production manager also said that it seemed like there was more waste. Material purchase price for the containers is based on a contract tied to the price of oil. Oil prices declined during the months of September and October.	[No Effect] [No Effect]	[No Effect] [No Effect]
October	OPEC is meeting this month to negotiate supply levels of oil for the following year.	[No Effect]	[No Effect]
November	Toward the end of November, due to the deteriorating efficiency of the production machinery it was decided to take a plant outage and accelerate the maintenance originally scheduled for March of the following year.	[No Effect]	[No Effect]
December	The plant started back up in early December and the maintenance performed in November appears to have resolved the efficiency issues.	[No Effect]	[No Effect]

1. Complete the tables above.
2. In the space provided below, briefly describe and number your recommendations. You may have noticed issues that are not directly related to the events included in the above tables.