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please show the steps. Ault manufactures embroidered jackets. The company prepares flexible budgets and uses a standard cost system to control manufacturing costs. The following
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Ault manufactures embroidered jackets. The company prepares flexible budgets and uses a standard cost system to control manufacturing costs. The following standard unit cost of a jacket is based on the static budget volume of 14,200 jackets per month: (Click the icon to view the cost data.) Requirements Data Table Requirement 1. Compute the price and efficiency variances for direct materials and direct labour. Begin by determining the formula for the price variance, then compute the price variances for direct materials (DM) and direct labour (DY unfavourable (U).) $ 11.85 18.40 x Price variance DM DL ( [ ( Direct materials ( 3.0 sq. mx $3.95 per sq. m) .... Direct labour ( 2 hours x $9.20 per hour) ......... Manufacturing overhead: Variable ( 2 hours x $0.60 per hour) .....$ Fixed ( 2 hours x $2.30 per hour) ....... 1.20 4.60 Next, determine the formula for the efficiency variance, then compute the efficiency variances for direct materials (DM) and direct labour unfavourable (U).) 5.80 36.05 $ Total cost per jacket................................. = Efficiency variance . DM (L DLL Data for November of the current year include the following: a. Actual production was 13,800 jackets. b. Actual direct materials usage was 2.50 m per jacket at an actual cost of $4.10 per m2 C. Actual direct labour usage of 25,400 hours cost $238,760. d. Total actual overhead cost was $81,000. Requirement 2. Ault's management intentionally purchased superior materials for November production. How did this decision affect theStep by Step Solution
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