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During her internship, Donna struggled with standard cost variance analysis for some of the firm's clients. Her supervisor suggested she approach it a different way:
During her internship, Donna struggled with standard cost variance analysis for some of the firm's clients. Her supervisor suggested she approach it a different way: instead of calculating the variances using the standards and specific company details, she asked Donna to interpret the total amounts used in the variance framework to better see how everything fits together. Donna's supervisor selected one client at random and provided the following costs and descriptions to her trainee. (a) Using the costs described above, populate a complete variance analysis framework to calculate (1) price and efficiency variances for DM,DL, and variable-MOH and (2) price and volume variances for fixed-MOH. a) Using the costs described above, populate a complete variance analysis framework to calculate (1) price and efficiency variances for OM,DL, and variable-MOH and (2) price and volume variances for fixed-MOH
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