Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Multicolumn Journal

Authors: Claudia Gilbertson

11th Edition

1337565423, 9781337565424

More Books

Students also viewed these Accounting questions

Question

What were the processes that caused the outcomes?

Answered: 1 week ago

Question

2. In what way can we say that method affects the result we get?

Answered: 1 week ago