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please give me correct answer 1. Cremer Textiles is starting a new year. The managers sat together to plan for the coming year. The plan
please give me correct answer
1. Cremer Textiles is starting a new year. The managers sat together to plan for the coming year. The plan is to become more efficient than last year. They to use 3 yds of direct material for each unit produced. Each yard of direct material will cost the company a $5 compared to 2 yds per product and $4 per yard last year. The direct labor is also becoming more efficient by trimming down its production requirement to 2 hours per unit produced from 3 hours. The hourly rate stays the same like last year at $10 per hour. $4.50 In total, the company purchased 35,000 yds of direct materials and produced 10,000 units using 90% of the materials purchased. Due to deflation, the company could purchase the materials at per yard. The workers in the factory made a demand for higher wage and to break up their union, the management agreed to pay them $11 per hour for their work. In total, they worked for 19,500 hours. The company planned to sale all the products produced but failed to satisfy the buyer and so they could only sell 80% of the products produced. The selling price also saw decline from the initial plan of $45 to $40 per product. . Calculate the Total Direct Material Variance (3) Calculate the Total Direct Labor Variance (3) Discuss why hiring employees at lower rate can help you with rate variance but can affect other variances. (4)Step by Step Solution
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