Question
Requirement 2: Calculate the direct materials cost variance and the direct materials efficiency variance as well as the direct labor costs and efficiency variances. Begin
Requirement 2: Calculate the direct materials cost variance and the direct materials efficiency variance as well as the direct labor costs and efficiency variances.
Begin with the cost variances. Select the required? formulas, compute the cost variances for direct materials and direct? labor, and identify whether each variance is favorable? (F) or unfavorable? (U). ?(Abbreviations used: AC? = actual? cost; AQ? = actual? quantity; FOH? = fixed? overhead; SC? = standard? cost; SQ? = standard? quantity.)
Next, Select the required? formulas, compute the efficiency variances for direct materials and direct? labor, and identify whether each variance is favorable? (F) or unfavorable? (U). ?(Abbreviations used: AC? = actual? cost; AQ? = actual? quantity; FOH? = fixed? overhead; SC? = standard? cost; SQ? = standard? quantity.)
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