Direct Materials Variance		Filler		Liner		Total
	Price variance:
	Actual price		$ 1.90		$ 8.20
	Standard price		2.00		8.00
	Variance		$ (0.10)		$ 0.20
	Actual quantity		48,000		85,100
	Direct materials price variance?(favorable) unfavorable		$ (4,800)		$ 17,020		$ 12,220
	Quantity variance:
	Actual quantity used (lbs.)
	Standard quantity used (lbs.)
	Variance (lbs.)
	Standard price		$2.00		$8.00
	Direct materials quantity variance?(favorable) unfavorable
	Total direct materials cost variance?(favorable) unfavorable
	Total direct materials cost variance:
	Actual cost		$ 91,200		$ 697,820
	Standard cost
	Total direct materials cost variance?(favorable) unfavorable
	Supporting calculations:
	Standard quantity used of filler:		Womens		Men's		Total
	Coats produced		4,400		5,800
	Standard amount per coat (lbs.)		4.00		5.20
	Total		17,600		30,160		47,760
	Standard quantity used of liner:
	Coats produced		4,400		5,800
	Standard amount per coat (yds.)		7.00		9.40
	Total		30,800		54,520		85,320
			Women's		Men's
	Direct Labor Variance		Coats		Coats		Total
	Rate variance:
	Actual rate		$ 14.10		$ 13.30
	Standard rate		14.00		13.00
	Variance		$ 0.10		$ 0.30
	Actual time		1,825		2,800
	Direct labor rate variance?(favorable) unfavorable		$ 182.50		$ 840.00		$ 1,022.50
	Time variance
	Actual tiime		1,825		2,800
	Standard time
	Variance
	Standard rate		$14.00		$13.00
	Direct labor time variance?(favorable) unfavorable
	Total direct labor cost variance?(favorable) unfavorable
	Total direct labor cost variance:
	Actual cost		$ 25,732.50		$ 37,240.00
	Standard cost
	Total direct labor cost variance?(favorable) unfavorable

PR 7-2B Flexible budgeting and variance analysis I'm Really Cold Coat Company makes women's and men's coats. Both products require filler and lining material. The following planning information has been made available: OBJ. 1, 2,3 Standard Amount per Unit Men's Coats 5.20 lbs 9.40 yds. 0.50 hr Standard Price per Unit $2.00 per lb. 8.00 per yd Women's Coats Filler Liner Standard labor time 4.0 lbs. 7.00 yds. 0.40 hr. Women's Coats 5,000 units $14.00 per hr. Men's Coats 6,200 units $13.00 per hr. Planned production Standard labor rate I'm Really Cold Coat Company does not expect there to be any beginning or ending inventories of filler and lining material. At the end of the budget year, Im Really Cold Coat Company experienced the following actual results: Women's Coats 4,400 Actual Price per Unit $1.90 per Ib Mens Coats 5,800 Actual Quantity Purchased and Used 48,000 85,100 Actual Labor Hours Used 1,825 2,800 Actual production Filler Liner 8.20 peryd. Actual Labor Rate Women's coats Men's coats 14.10 per hr. 13.30 per hr The expected beginning ventory and desired ending ventory were realized. Instructions . Prepare the following variance analyses for both coats and the to based on the actual results and production levels at the end of the budget year a. Direct materials price, quantity, and total variance b. Direct labor ate, time, and total variance. 2. Why are the standard amounts in part (1) based on the actual production at the end of the year instead of the planned production at the beginning of the year