The following table gives a reasons why the materials or labour cost variance could be favourable...

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The following table gives a reasons why the materials or labour cost variance could be favourable or unfavourable for a furniture manufacturer. Try to think of another reason for each type of variance when it is favourable, and another reason for each type of variance when it is unfavourable. Unfavourable if... Reason 1 Unfavourable if... Reason 2- for you to fill in! Favourable if... Reason1 Favourable if... Reason 2- for you to fill in! Material Price Variance Change in raw materials price due to exchange rate Better negotiating skills when buying materials Material Usage Variance Material is being wasted Factory staff have been on a training course to know how best to use machines Labour Price Variance Change in labour hourly rate if new wage settlement agreed with trade unions Younger staff are employed where the minimum wage hourly rate is less Labour Usage Variance Experienced staff retire and new less skilled staff take longer to perform tasks Staff are happier at work due to better management so this makes them achieve tasks quicker The following table gives a reasons why the materials or labour cost variance could be favourable or unfavourable for a furniture manufacturer. Try to think of another reason for each type of variance when it is favourable, and another reason for each type of variance when it is unfavourable. Unfavourable if... Reason 1 Unfavourable if... Reason 2- for you to fill in! Favourable if... Reason1 Favourable if... Reason 2- for you to fill in! Material Price Variance Change in raw materials price due to exchange rate Better negotiating skills when buying materials Material Usage Variance Material is being wasted Factory staff have been on a training course to know how best to use machines Labour Price Variance Change in labour hourly rate if new wage settlement agreed with trade unions Younger staff are employed where the minimum wage hourly rate is less Labour Usage Variance Experienced staff retire and new less skilled staff take longer to perform tasks Staff are happier at work due to better management so this makes them achieve tasks quicker

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Material Price Variance Unfavourable if Reason 1 Cost of materials is higher due to supplier raising ... View the full answer