Required information Integration Exercise 9 Variance Analysis and Internal Business Process Performance Measures LO 10-1, LO 10-2, LO 10-3, LO 12-3 [The following information applies to the questions displayed below.] "I thought lean production was supposed to make us more efficient" commented Ben Carrick, manufacturing vice president of Vorelli Industries. "But just look at June's manufacturing variances for Zets. The labor efficiency variance was $240,000 unfavorable-four times higher than it's ever been before. If you add on the $102,000 unfavorable materials price variance, that's $342,000 down the drain in a single month on just one product." "Now take it easy, Ben," replied Sandi Shipp, the company's purchasing manager. "We knew the switch to lean production was going to increase our material costs. But now we're partnering with top-notch suppliers who deliver raw materials to our plant three times a day. In a few months, we'll be able to offset most of our higher purchasing costs by vacating three rent