Arctic Coat Company makes women's and men's coats. Both products require filler and lining material. The following planning information has been made available:

Arctic Coat does not expect there to be any beginning or ending inventories of filler and lining material. At the end of the budget year, Arctic Coat experienced the following actual results:

The expected beginning inventory and desired ending inventory were realized.

Instructions
1. Prepare the following variance analyses, based on the actual results and production levels at the end of the budget year:
a. Direct materials price, quantity, and total variance.
b. Direct labor rate, time, and total variance.
2. Why are the standard amounts in part (1) based on the actual production at the end of the year instead of the planned production at the beginning of theyear?

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Standard Quantity kW Women's Coats Men's Coats Standard Price per Unit $29.00 Filler Liner Standard labor time Planned production Standard labor rate 2.5 lbs. 6.0 yds. 0.40 hr. 2,500 units $12.80 per hour 4.0 lbs. 8.5 yds. 0.60 hr 4,000 units $15.50 per hour 5.00 Women's Coats 2,300 Actual Price per Unit $27.50 Men's Coats 3,500 Actual Quantity Purchased and Used 20,400 Actual production Filler Liner 5.50 43,200 Actual Labor Hours Used 1,050 Actual Labor Rate Woman's Coat Man's Coat $12.00 15.80 1,980