1 Flexible Budgets, Direct-Cost Variances, and Management Control mur 2 Materials and manufacturing labor variances 3 4 Consider the following data collected for Great Homes, Inc.: 5 6 7 Direct Direct Manufacturing Materials Labor Cost incurred: Actual inputs x actual prices $200,000 $90,000 Actual inputs x standard prices 214,000 86,000 9 Standard inputs allowed for actual output x standard prices 225,000 80,000 10 11 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked 12 wrong. 13 14 Requirement 15 Compute the price, efficiency, and flexible-budget variances for direct materials and direct manufacturing labor. a. Use the ABS function when calculating variances, and use the drop-down selections for F (favorable) or U (unfavorable) when 16 describing the variances (Always use cell references and formulas where appropriate to receive full credit. If you 1 copy/paste from the Instructions tab you will be marked wrong.) 2 Direct Manufacturing 3 Direct Materials F/U Labor 4 |(1) Price variance 5 (2) Efficiency variance 6 (3) Flexible-budget variance F/U 7