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I need help explaining the following: Illustrate the variances observed between the planned and actual values for the direct labor time and the direct materials
I need help explaining the following:
Illustrate the variances observed between the planned and actual values for the direct labor time and the direct materials price per collars. What changed?
Data for Variance Analysis: Actual Budgeted (Standard) Hours/Qty Budgeted (Standard) Rate Actual Hours/Qty Rate Labor 160 $ 16.00 180 $ 16.50 Materials 600 $ 9.10 660 $ 10.00 Variances for Collar Sales Favorable/ Unfavorable Variance Direct Labor Time Variance (Actual Hours - Standard Hours) x Standard Rate $ 320.00 Unfavorable Direct Labor Rate Variance (Actual Rate - Standard Rate) x Actual Hours $ 90.00 Unfavorable Direct Materials Quantity/Efficiency Variance (Actual Quantity - Standard Quantity) x Standard Price $ 546.00 Unfavorable Direct Materials Price Variance (Actual Price - Standard Price) x Actual Quantity $ 594.00 UnfavorableStep by Step Solution
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