Question
Required: a. Calculate materials price and efficiency variances and indicate whether these variances are favourable or unfavourable. b Discuss the possible causes of materials price
Required:
a. | Calculate materials price and efficiency variances and indicate whether these variances are favourable or unfavourable. |
b | Discuss the possible causes of materials price and efficiency variances. |
c. | Calculate labour rate and efficiency variances and indicate whether these variances are favourable or unfavourable. |
d | Discuss the possible causes of labour rate and efficiency variances. |
e. | Calculate variable overhead spending and efficiency variances and indicate whether these variances are favourable or unfavourable. |
f. | The variable overhead efficiency variance has nothing to do with efficient use of variable overhead. Do you agree or disagree? Why? |
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