Question $20$ of $20$

$\frac{3\mathrm{.}75}{10}$

The company where Donald works produces skateboards locally but sells them globally for $$60$ each. Donald is one of the production managers in a meeting to discuss preliminary results from the year just ended. Here is the information they had in front of them:

$\backslash$table$[[,\backslash$table$[[$Standard Quantity$],[$per Unit$]],$Standard Price$],[$Wood$,2\mathrm{.}00$ feet,$$5\mathrm{.}00$ per foot$],[$Wheels$,4\mathrm{.}00$ wheels,$$0\mathrm{.}55$ per wheel$],[$Direct labor,$0\mathrm{.}30$ hours,$$16\mathrm{.}00$ perhour$]]$

Actual results:

Quantity of wood purchased, $180,400$ feet; quantity of wood used, $176,400$ feet.

Quantity of wheels purchased, $361,680$ wheels; quantity of wheels used, $337,680$ wheels.

Actual cost of the wood, $$5\mathrm{.}10$ per foot.

Actual cost of the wheels, $$0\mathrm{.}60$ per wheel.

Quantity of DL hours used, $26,880$ hours; actual cost of DL hours, $$17\mathrm{.}50$ per hour.

Actual units produced, $84,000$ skateboards.

$($a$)$

Your Answer

Complete a variance analysis for DM $($both wood and wheels$)$ and DL$,$ determining the price and efficiency variances for each; be sure to specify the amount and sign of each variance.

Price Variance

Efficiency Variance

Unfavorable

$

$42,000$

Unfavorable

Unfavorable

$

$

Unfavorable