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Can you help me with finding equations for these as well as if they are favorable or unfavorable? Lexi picked up the phone and called
Can you help me with finding equations for these as well as if they are favorable or unfavorable?
Lexi picked up the phone and called Irvin. "Irvin, don't get it. We beat the budgeted operating income for the month, but look at all the unfavorable variances on the operating costs. Can you help me understand what's going on?" "Let me look into it and Ill get back to you," Irvin replied. Irvin gathered the following additional information about the month's performance. Direct materials purchased: 101,082 pounds at a total of $555,g51 Direct materials used: 101,082 pounds Direct labor hours worked: 26,262 at a total cost of $265,241 Machine hours used: 40,581 Irvin also found the standard cost card for a case of product. 25.80 28.00 10.g2 Direct materials Direct labor Variable overhead Fixed overhead Total standard cost per case Standard Price $5.50 per pound $10 per DLH $7 per MH $2.73 per MH Standard Quantity 10 pounds 2.58 DLH 4 4 Standard Cost $55 $11g.72
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