QUESTION 11 ADS Luxury Lid acquires one of the clothing manufacturers above and wants to evaluate the production efficiency with regard to the top selling product-premium beach dresses The budgeted production was 4 300 dresses with the following standard costs for material and labour perdress Standard Cost Standard Usage per dres Direct Material Direct Labour $2 35 per ko $9 50 per hour 0.5 kg 1.5 hours Actual operating results for the year were as follows: Inventory Beginning inventory at the start of the year 3.500 units Closing Inventory at the end of the year 4400 units Inventory sold during the year 4,200 units 1,900 kg Direct Material: Beginning Raw Material at the start of the year Closing Raw Material at the end of the year Raw Material purchased during the year 1.800 kg 3,900 kg at an actual cost of $8,580 Direct Labour: Actual Hours worked Actual Cost 9,550 hours $68,815 Relevant Formula Material Price Variance Actual Quantity Purchased X (Actual Price - Standard Price) Material Usage Variance Standard Price x (Actual Quantityused - Standard Quantityused) Labour Rate Variance Actual Hours x (Actual Rate - Standard Rato) Labour Efficiency Variance Standard Ratex (Actual Hours - Standard Hours) QUESTION 11 ADS Luxury Lid acquires one of the clothing manufacturers above and wants to evaluate the production efficiency with regard to the top selling product-premium beach dresses The budgeted production was 4 300 dresses with the following standard costs for material and labour perdress Standard Cost Standard Usage per dres Direct Material Direct Labour $2 35 per ko $9 50 per hour 0.5 kg 1.5 hours Actual operating results for the year were as follows: Inventory Beginning inventory at the start of the year 3.500 units Closing Inventory at the end of the year 4400 units Inventory sold during the year 4,200 units 1,900 kg Direct Material: Beginning Raw Material at the start of the year Closing Raw Material at the end of the year Raw Material purchased during the year 1.800 kg 3,900 kg at an actual cost of $8,580 Direct Labour: Actual Hours worked Actual Cost 9,550 hours $68,815 Relevant Formula Material Price Variance Actual Quantity Purchased X (Actual Price - Standard Price) Material Usage Variance Standard Price x (Actual Quantityused - Standard Quantityused) Labour Rate Variance Actual Hours x (Actual Rate - Standard Rato) Labour Efficiency Variance Standard Ratex (Actual Hours - Standard Hours)