Question
can somebody help me: Company produces chairs and has determined the following direct cost categories and budgeted amounts: Standard InputsStandard Cost Categoryfor 1 outputper input
can somebody help me:
Company produces chairs and has determined the following direct cost categories and budgeted amounts:
Standard InputsStandard Cost
Categoryfor 1 outputper input
Direct Materials1.00$7.00
DirectLabour0.308.00
Direct Marketing0.503.50
Actual performance for the company is shown below:
Actual output: (in units)4,000
Direct Materials:
Materials costs$30,225
Input purchased and used3,900
Actual price per input$7.75
Direct ManufacturingLabour:
Labourcosts$11,470
Labour-hours of input1,240
Actual price per hour$9.25
Direct MarketingLabour:
Labourcosts$5,880
Labour-hours of input2,100
Actual price per hour$2.80
Required:
a.What is the combined total of the flexible-budget variances?
b.What is the rate variance of the direct materials?
c.What is the rate variance of the direct manufacturinglabourand the direct marketinglabour, respectively?
d.What is the efficiency variance for direct materials?
e.What are the efficiency variances for direct manufacturinglabourand direct marketinglabour, respectively?
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