Answer to the question no: 1

(1)Answer: I think favorable variance always good for the organization because it shows always standard cost is higher than actual cost and that always help to make profit for the organization.So it's good always. 

             Answer to the question no: 2

(2)Answer: Reason's of material price variance:

(1)unit of order:If unit of order is more than our capacity then we need to purchase more materials than our standard or predetermined budget.Then actual cost goes up than standard cost of material and unfavourable variance will arise.

(2)Rush order: If order of product comes at a higher rate than our capacity then we need to purchase more material to make products or to met the order than our standard or predetermined budget.And actual cost goes up than standard cost of material and unfavourable variance will arise.

(3)Quality of material purchase: If we purchase more Qualitifull material than our standard or budget then actual cost goes up than standard cost of material and unfavourable variance will arise.