Question $7[10$ points$]$

JenStar has the following information available:

Please make sure your final answer$($s$)$ are accurate to $2$ decimal places.

a$)$ Compute the materials price variance.

Materials price variance $=$ Select one $($Favorable$,$ Unfavorable$)$

b$)$ Compute the materials quantity variance.

Materials quantity variance $=$ Select one $($Favorable$,$ Unfavorable$)$

c$)$ Choose the most likely reason for the favorable$/$unfavorable materials price and quantity variances:

Materials were purchased from a different supplier that charged a higher price; Less experienced workers were hired resulting in more materials wasted

Materials were purchased from a different supplier that charged a higher price; More experienced workers were hired resulting in less materials wasted.

Materials were purchased from a different supplier that charged a lower price; More experienced workers were hired resulting in less materials wasted.

Materials were purchased from a different supplier that charged a lower price; Less experienced workers were hired resulting in more materials wasted.

d$)$ Compute the labor rate variance.

Labor rate variance $=$ Select one $($Favorable$,$ Unfavorable$)$

e$)$ Compute the labor efficiency variance.

Labor efficiency variance $=$ Select one $($Favorable$,$ Unfavorable$)$

f$)$ Choose the most likely reason for the favorable$/$unfavorable labor rate and efficiency variances:

Pay raises were implemented; Workers were more efficient.

Anticipated pay raises were not implemented yet; Workers were less efficient.

Pay raises were implemented; Workers were less efficient.

Anticipated pay raises were not implemented yet; Workers were more efficient.