For the Quarter Just Ended, Bojangles, Inc

question 6

Essay

For the quarter just ended, Bojangles, Inc. reported the following variances in one of its manufacturing departments:
Material price variance, U
Material quantity variance, F
Labor efficiency variance, F
Labor rate variance, negligible
Machine hours efficiency, F
The sum of the favorable variances exceeded the unfavorable materials price variance by a considerable amount. The quality of the output from the department was the same as usual. Bojangles operates very close to a JIT system for materials purchases, with virtually all material acquired during the quarter being used in manufacturing activities.
Required:
Is there any connection among these variances? If so, explain.

---

Definitions:

Exposure Treatment

A therapeutic technique used to treat anxiety disorders by gradually exposing patients to their feared objects or situations in a controlled way to reduce fear.

Jamais Vu

The phenomenon of experiencing a situation that one recognizes in some fashion but that nonetheless seems very unfamiliar.

Stress-Related Illness

Health problems, either physical or psychological, that are precipitated or exacerbated by stress.

Criminal Justice System

The set of legal and social institutions for enforcing the criminal law in accordance with a defined set of procedural rules and limitations.