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11. As noted above, the actual production was 2,000 units more than the budgeted production. What affect does this have on the 3 variances which were computed in questions \#5 - \#7 above and WHY? Yas the folloming te ensesc cuestiens s.11: [15 peints) ainctmateribl znetest The compary uses a standard costing system to account for manufacturing operations and has noted buent material vised mevew specke developments which occurred during the most recent year. For each situation describe bhiow, indicate the varance (name) AND the amount which most directly indicates the financial effect this atuation had on the companys profits for the year. Do NOT list any specific variance as the answe more than one of the questions below. 5. As a nesut of new machinery maintenance procedures which were put in place, the company expenenced a decrease in the amount of wasted materials and scrap during production. (name of variance) (amountanddirection)$ 6. In order to decrease appraisal and internal failure costs, the company experimented with a higher-quality and more costly material than originally planned. 6. In order to decrease appraisal and intemal fallure costs, the company experimented with a (name of variance) higher-quality and more costly material than originally planned. 7. During the year, the company used a new factory setup was suggested as part of their value engineering process allowing workers to operate more effectively and produce more units m quickly than expected. Variance Amount \& direction Page 2 11. As noted above, the actual production was 2,000 units more than the budgeted production. What affect does this have on the 3 variances which were computed in questions \#5 - \#7 above and WHY? Yas the folloming te ensesc cuestiens s.11: [15 peints) ainctmateribl znetest The compary uses a standard costing system to account for manufacturing operations and has noted buent material vised mevew specke developments which occurred during the most recent year. For each situation describe bhiow, indicate the varance (name) AND the amount which most directly indicates the financial effect this atuation had on the companys profits for the year. Do NOT list any specific variance as the answe more than one of the questions below. 5. As a nesut of new machinery maintenance procedures which were put in place, the company expenenced a decrease in the amount of wasted materials and scrap during production. (name of variance) (amountanddirection)$ 6. In order to decrease appraisal and internal failure costs, the company experimented with a higher-quality and more costly material than originally planned. 6. In order to decrease appraisal and intemal fallure costs, the company experimented with a (name of variance) higher-quality and more costly material than originally planned. 7. During the year, the company used a new factory setup was suggested as part of their value engineering process allowing workers to operate more effectively and produce more units m quickly than expected. Variance Amount \& direction Page 2

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