Interaction of Materials and Labour Variances

question 78

Essay

Interaction of materials and labour variances
For the quarter just ended, BoSan Pty Ltd reported the following variances in one of its manufacturing departments:
The sum of the favourable variances above exceeded the unfavourable materials price variance by a considerable amount. The quality of the output from the department was the same as usual. Practically all of the raw material used in this quarter was purchased in this quarter.
Is there any connection between these variances? If so, explain.

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Definitions:

Algonquians

A group of Native American peoples speaking Algonquian languages, widespread across North America, particularly in the northeastern region.

Settled Agriculture

The practice of cultivating the land and raising crops on a continual basis, a key development in human history that led to the growth of civilizations.

Patrilineally

A system of lineage or descent traced through the male line; where inheritance and family ties are determined by the father's lineage.

Distinct Languages

Languages that are recognizably different from each other in terms of structure, vocabulary, and pronunciation.