This analysis should be conducted from a qualitative and quantitative aspect. You should complete your calculations in Excel, and then provide a summary of your results in the report. You are required to calculate a number of variances for Sarah, and provide at least two valid reasons why each of these variances may have occurred.

Sarah has been studying the profitability of each division of the company and has noticed that there has been a decrease in profitability in the Office and Study Furniture product line, specifically regarding office chairs. MML does not sell a lot of office chairs, as many companies purchase ergonomically adapted chairs. However, some offices will order customized wooden chairs for their reception areas. Sarah is reviewing the most recent results from this product line for the month of October: Analysis of Operating Income for Office Chairs The production manager has provided the standard cost sheet for the office chairs: The production manager also provided a breakdown of the actual costs for October for the 780 units