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Hello, I need help with my accounting class homework. I've been out of class, because I had surgery done. PR 23-2B Flexible budgeting and variance
Hello, I need help with my accounting class homework. I've been out of class, because I had surgery done.
PR 23-2B 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 Women's Coats 4.0 lb. 7.0 yds. 0.40 hr. Men's Coats 5.2 lb 9.4 yds. 0.50 hr Standard Price per Unit $2.00 per lb 8.00 per yd Filler Liner Standard labor time Women's Coats Men's Coats 6,200 units $13.00 per hr Planned production Standard labor rate 5,000 units $14.00 per hr 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, I'm Really Cold Coat Company experienced the following actual results Women's Coats 4,400 Actual Price per Unit $1.90 per lb Men's Coats 5,800 Actual Quantity Purchased and Used 48,000 85,100 Actual Labor Hours Used 1,825 2,800 Actual production Filler 8.20 per yd. Liner Actual Labor Rate $14.10 per hr 13.30 per hr Women's coats Men's coats The expected beginning inventory and desired ending inventory were realized Instructions 1. Prepare the following variance analyses for both coats and the total, 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 rate, time, and total varianceStep by Step Solution
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