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Read the requirements.

Requirement $1.$ Calculate the direct materials and direct manufacturing labor price and efficiency variances in May $2020.$ What is the total fle

manufacturing labor in the flexible budget?

Begin by calculating the direct materials and direct manufacturing labor price and efficiency variances in May $2020.$ Complete the actual resul

nearest cent.$)$

Data table

The total flexible$-$budget variance for both inputs $($direct materials and direct manufacturing labor$)$ combined is

This variance is $,\%$ of the total cost of direct materials and direct manufacturing

labor in the flexible budget.

$($Round the variance to the nearest cent and the percentage to two decimal places, $x.xx\%.)$

Requirement $2.$ Comment on the May $2020$ results. Would you continue the "experiment" of using the new material?

since the new material costs more than the old.

system is complex and very expensive.

D$.$ Efficiencies have improved in the direction indicated by the production manager. Amy Lou should not continue to use the new material, though, since the overall efficiency variance is still unfavorable.