In reviewing a variance analysis report you note that there was a very favorable materials price variance last month but unfavorable labor and...

In reviewing a variance analysis report you note that there was a very favorable materials price variance last month but unfavorable labor and materials efficiency variances. What situation could have caused these variances? What would you do to test your explanation of the variances (what information or questions would you ask)?

A favorable material price variance is mainly due to quantity purchased and also because ofdeviations occurred between standard and actual prices which are given importance by pricevariance by...