Requirements:

1. Calculate the direct materials and direct manufacturing labor price and efficiency variances in May 2017. What is the total flexiblebudget variance for both inputs (direct materials and direct manufacturing labor) combined? What percentage is this variance of the total cost of direct materials and direct manufacturing labor in the flexible budget?

2. Comment on the May 2017 results. Would you continue the "experiment" of using the new material?

Carol Ann has a policy of analyzing all input variances when they add up to more than 8% of the total cost of materials and labor in the flexible budget, and this is true in May 2017. The production manager discusses the sources of the variances: "A new type of material was purchased in May. This led to faster cutting and sewing, but the workers used more material than usual as they learned to work with it. For now, the standards are fine."

Carol Ann, Inc. designs and manufactures fleece quarter-zip jackats. It sells its jackets to brand-name outdoor Outfitters in lots of one dozen. Carol Ann's May 2017 static budget and actual results for direct inputs are as follows: (Click the icon to view the data.) i (Click the icon to view additional information.) () Read the requirements Requirement 1. Calculate the direct materials and direct manufacturing labor price and efficiency variances in May 2017. What is the total flexble-budget variance for both inputs direct materials and direct manufacturing labor) combined? What percentage s this variance of the total cost of direct materials and direct manufacturing labor in the flexible budget? Begin by calculating the direct materials and direct manufacturing labor price and efficiency variances in May 2017. Complete the actual results, price variance, and cost columns, then the efficiency variance and flexible budget colurns. Label each variance as favorable or unfavorable. (Round all answers to the nearest cent) Actual Price Varlance Actual Input Qty Budgeted Price May 2017 Results X More Info Units Direct materials Direc. labor Total variance Carol Ann has a policy of analyzing all ingut variances when they add up to mare than a % of the tolal cost of materials and labor in the flexible budget and this is true in May 2017. The production manager discusses the sources of the variances: "A new type of malerial was purchased in May. This led to faster cutting and sewing, but the workers used more malerial than usual as they learned to work , with it For now, the standards are line. - X Data Table Print Done 650 Requirements 13 yards at $1.70 per yard = $22.10 1.9 hours at $8.20 per hour - $15.58 $ Static Budget Number of jacket lots 1 lot = 1 dozen) Per Lot of Jackets Direct materials Direct manufacturing labor Actual Results Number of jacket lots sold Total Direct Inputs: Direct materials Direct manufacturing labor 675 1. Calculate the direct materials and direct manufacturing labor price and efficiency variances in May 2017. What is the total flexible-budget variance for both inputs (direct materials and direct manufacturing labor) combined? What percentage is this variance of the total cost of direct materials and direct manufacturing labor in the flexible budget? 2. Comment on the May 2017 results. Would you continue the experiment of using the new material? 10,125 yards at $1.90 per yard - $10,237.50 1,148 hours al $8.30 per hour - 59.520.40