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I need help finding all 10 variances and setting up the problem. Thanks! PROBLEM: Variances Fletcher Company collected the following data regarding production of one
I need help finding all 10 variances and setting up the problem. Thanks!
PROBLEM: Variances Fletcher Company collected the following data regarding production of one of its products. Direct materials budget/standard (6 lbs @ $2/lb) Actual direct materials used Actual finished units produced Actual cost of direct materials used Direct labor budget/standard (.5 hours @ $12/hour) Actual direct labor used Actual cost of direct labor used Budgeted finished units Actual Selling Price Budgeted Selling Price $12 243,000 lbs per finished unit 40,000 units $483,570 total DM cost 6 per finished unit 22,000 hours $125,000 total DL cost 45,000 units $100 per unit $110 per unit Budgeting & Variances Cost Variance Analysis Budget Variance Flex Budget Variance Sales Volume Variance Selling Price Variance Direct Materials Variance Direct Labor Variance DM Price Variance (Actual Price Budgeted Price)x Actual Quantity DL Price Variance (Actual Price- Budgeted Price) x Actual Quantity DM Quantity Variance lefficieney) (Actual Quantity Budgeted Quantity @Actual Output) x Budgeted Price VL Quantity Variance lefficiencyl (Actual Quantity- Budgeted QuantityActual Output) x Budgeted PriceStep by Step Solution
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