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Maple Leaf Production manufactures truck tires. The following information is available for the last operating period. Maple Leaf produced and sold 91,000 tires for $44
Maple Leaf Production manufactures truck tires. The following information is available for the last operating period. Maple Leaf produced and sold 91,000 tires for $44 each. Budgeted production was 95,000 tires. Standard variable costs per tire follow: Direct materials: 4 pounds at $2.00 Direct labor: 0.30 hours at $18.00 Variable production overhead: 0.30 machine-hours at S20 per hour Total variable costs $ 8.00 5.40 6.00 $19.40 Fixed production overhead costs: Monthly budget $1,426,000 Fixed overhead is applied at the rate of $16 per tire. Actual production costs: Direct materials purchased and used: 383,000 pounds at $1.90 Direct labor: 25,500 hours at $18.30 Variable overhead: 28,000 machine-hours at $20.30 per hour Fixed overhead $ 727,700 466,650 568,400 1,440,000 Required: a. Prepare a cost variance analysis for each of the variable costs for Maple Leaf Productions. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Direct Materials Direct Labor Variable Overhead Actual costs Actual inputs at standard price Flexible budget Price variance Efficiency variance Cost variance
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