Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

owner 8 - 2003, 200g -- Novenais and labor are as follows: Budgeted Actual DM price $2 per pound $1.75 per pound DM quantity per

image text in transcribed
owner 8 - 2003, 200g -- Novenais and labor are as follows: Budgeted Actual DM price $2 per pound $1.75 per pound DM quantity per unit 7 pounds per unit 8 pounds per unit DL price $12 per hour $15 per hour DL quantity per unit 0.4 hours per unit 0.5 hours per unit Actual sales volume is 100 units, Budgeted sales volume is 80 units. a) Without computations, characterize the following variances as favorable or unfavorable: Input price variance for DM OF CU input efficiency variance for DM FOU input price variance for DL FOU Input efficiency variance for DLOU b) Compute the input price and input efficiency variances for DM and DL. As a preliminary step, compute actual input quantity (total pounds or hours we actually used) and flexible budget input quantity (total pounds or hours we should have used for actual output) actual input quantity for DM - 800 pounds flexible budget input quantity for DM - 700 pounds actual Input quantity for DL - 50 hours flexible budget input quantity for DL - 40 hours Next, compute the variances. Enter favorable variances as a positive number and unfavorable variances as a negative number. Do NOT enter For U. Input price variance for DM - $ X Input efficiency variance for DM - $ input price variance for DL - $ input efficiency variance for DL = $ Submit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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 Emphasis

Authors: Edward Blocher, David E. Stout, Gary Cokins, Kung Chen

4th Edition

0073128155, 978-0073128153

More Books

Students also viewed these Accounting questions