For the quarter just ended, Halston, 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.Halston 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.

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The Answer of For the quarter just ended, Halston, 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.Halston 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.

For the Quarter Just Ended, Halston, Inc