Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 23-2B Required 1: Calculate the DM & DL price, quantity and total variance MATERIALS Total DM Cost Variance: Filler Liner Total Actual Cost Standard

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Problem 23-2B Required 1: Calculate the DM \& DL price, quantity and total variance MATERIALS Total DM Cost Variance: Filler Liner Total Actual Cost Standard Cost Total DM Cost Variance DM Price Variance Filler Liner Total Actual Price Standard Price = Price Variance x Actual Quantity DM Price Variance DM Quantity Variance Filler Liner Total Actual Quantity Standard Quantity = Qty Variance 22 Standard Price 23 DM Quantity Variance Total DM Cost Variance check figure formula (0) LABOR Total DL Cost Variance: Women's Wen's Motal Actual Cost Standard Cost Total DL Cost Variance DL Rate Variance Women's Men's Total Actual Rate Standard Rate = Rate Variance x Actual Time DL Rate Variance DL Time Variance Women's Men's Total Actual Time Less: Standard Time* = Time Variance x Standard Rate DM Quantity Variance Required 2: Why are the standard amounts abovve based on the actual production at the end of the year instead of the planned production at the beginning of the year? Flexible Budgeting and Variance Analysis OB). 1,2,3 I'm Really Cold Coat Company makes women's and men's coats. Both products require filler and lining material. The following planning information has been made available: I'm Really Cold Coat Company does not expect there to be any beginning or ending inventories of filler and lining material. At the end of the budget year: I'm Really Cold Coat Company experienced the following actual results: The expected beginning inventory and desired ending inventory were realized. Instructions 1. Prepare the following variance analyses for both coats and the total, based on the actual results and production levels at the end of the budget year: a. Direct materials price, quantity, and total variance Check figure: Direct materials price variance, $12.220U b. Direct labor rate, time, and total variance 2. Why are the standard amounts in part (1) based on the actual production at the end of the year instead of the planned production at the beginning of the year

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

Step: 3

blur-text-image

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

Contemporary Auditing Issues And Cases

Authors: Michael Chris Knapp

3rd Edition

0538891173, 9780538891172

More Books

Students also viewed these Accounting questions