Question
Exercise 8-11A Determining materials price and usage variances LO 8-6 Moniques Florals produced a special Mothers Day arrangement that included eight roses. The standard and
Exercise 8-11A Determining materials price and usage variances LO 8-6
Moniques Florals produced a special Mothers Day arrangement that included eight roses. The standard and actual costs of the roses used in each arrangement follow:
Standard | Actual | ||||||
Average number of roses per arrangement | 7.10 | 7.50 | |||||
Price per rose | $ | 0.50 | $ | 0.44 | |||
Cost of roses per arrangement | $ | 3.55 | $ | 3.30 | |||
Moniques Florals planned to make 820 arrangements but actually made 930.
Required
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Determine the total flexible budget materials variance and indicate whether it is favorable (F) or unfavorable (U).
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Determine the materials price variance and indicate whether it is favorable (F) or unfavorable (U).
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Determine the materials usage variance and indicate whether it is favorable (F) or unfavorable (U).
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Confirm the accuracy of Requirements a, b, and c by showing that the sum of the price and usage variances equals the total variance.
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