REQUIRED

The company's policy is to record direct material price variances at the time materials are purchased.

1. Prepare a simple, meaningful variance report for direct materials, direct labor, and variable and fixed overhead that Latiefa could present to her supervisor

Latiefa is the cost accountant at Hallet and Sons, manufacturer of exquisite glass serving bowls. The materials used for the bowls are inexpensive, but the process is labour intensive. The supervisor decided to use less costly labour this period to see whether costs could be reduced. Latiefa needs to prepare a report for her supervisor about how effective operations had been during the month of January. She had set the following standards: Variable overhead is allocated by labour hours, and fixed overhead is allocated by unit. Estimated production per month is 40,000 standard direct labour hours. Records for January based on production of 7,800 units indicated the following