Q2 40 Marks

Having joined the company as a fresh graduate , the CFO call you to her office an gave you a report that shows the direct cost categories and budgeted amounts for the widgets that your company manufactures:

Standard Costs Input per One output unit Cost per input Direct Materials 1.00 KG $7.50/KG Direct Labor 0.30 HR $9.00/HR Direct Marketing 0.50 HR $3.00/HR Actual performance for the company is shown below based on 4,000 Actual Unit produced: Direct Materials: Materials costs $30,225 Input purchased and used 3,900 Actual price per input $7.75 Direct Manufacturing labor: Labor costs $11,470 Labor-hours of input 1,240 Actual price per hour $9.25 Direct Marketing labor: Labor costs $5,880 Labor-hours of input 2,100 Actual price per hour $2.80

Required: Prepare a report to address the following requirement s below and explain the potential causes of variances if they exist a. What is the combined total of the flexible-budget variances? b. What is the rate variance of the direct materials? c. What is the rate variance of the direct manufacturing labor and the direct marketing labor, respectively? d. What is the efficiency variance for direct materials? e. What are the efficiency variances for direct manufacturing labor and direct marketing labor, respectively?