Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Illustrate the variances observed between the planned and actual values for the direct labor time and the direct materials price for collars. What changed? Share

Illustrate the variances observed between the planned and actual values for the direct labor time and the direct materials price for collars. What changed?

Share a summary of your variance analysis. Were the variances favorable or unfavorable?

Evaluate the significance of the variances. Are the variances favorable or unfavorable? What does it mean?
Explain whether and how your evaluation will affect your budgeting and planning decisions for the next month or quarter.

Data for Variance Analysis:
Budgeted (Standard)
Hours/Qty
Budgeted (Standard)
Rate
Actual
Hours/Qty
Actual
Rate
Labor160$ 14.67180$ 16.50
Materials6,188$ 3.231,600$ 10.00
Variances for Collar Sales
VarianceFavorable/
Unfavorable
Direct Labor Time Variance
(Actual Hours - Standard Hours) x Standard Rate$ 293.40Unfavorable
Direct Labor Rate Variance
(Actual Rate - Standard Rate) x Actual Hours$ 329.40Unfavorable
Direct Materials Quantity/Efficiency Variance
(Actual Quantity - Standard Quantity) x Standard Price$ (14,819.24)Favorable
Direct Materials Price Variance
(Actual Price - Standard Price) x Actual Quantity$ 10,832.00Unfavorable

Step by Step Solution

There are 3 Steps involved in it

Step: 1

1 Direct Labor Time Variance Standard Hours 160 hours Standard Rate 1467 per hour Actual Hours 180 hours Actual Rate 1650 per hour Variance Calculation Actual Hours Standard Hours Standard Rate 180 ho... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost management a strategic approach

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

5th edition

73526940, 978-0073526942

More Books

Students also viewed these Accounting questions