Rugged Life, Inc. designs and manufactures fleece quarter-zip jackets. It sells its jackets to brand-name outdoor outfitters in lots of one dozen. Rugged Life's May 2020 static budget a actual results for direct inputs are as follows: (Click the icon to view additional information.) (Click the icon to view the data.) Read the requirements Requirement 1. Calculate the direct materials and direct manufacturing labor price and efficiency variances in May 2020. 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? Begin by calculating the direct materials and direct manufacturing labor price and efficiency variances in May 2020. Complete the actual results, price variance, and cost columns, then the efficiency variance and flexible budget columns. Label each variance as favorable or unfavorable Round all answers to the nearest cent.) May 2020 Units Actual Results Price Variance 325 Direct materials 31525 Direct labor 9000 Actual Input Qty Budgeted Price Efficiency Variance Total variance The total flexible-budget variance for both inputs (direct materials and direct manufacturing labor) combined is Flexible Budget Direct materials 31525 Direct labor 9009 Total variance The total flexible-budget variance for both inputs (direct materials and direct manufacturing labor) combined is This variance is labor in the flexible budget. % of the total cost of direct materials and direct manufacturing (Round the variance to the nearest cent and the percentage to two decimal places, XXX%) Requirement 2. Comment on the May 2020 results. Would you continue the "experiment" of using the new material? A. Efficiencies have declined although the production manager had indicated they would improve. Although the new material has superior quality and feel labor in the flexible budget. This variance is als and direct manufacturing labor) combined is % of the total cost of direct materials and direct manufacturing (Round the variance to the nearest cent and the percentage to two decimal places, XXX%) Requirement 2. Comment on the May 2020 results. Would you continue the "experiment" of using the new material? OA. Efficiencies have declined although the production manager had indicated they would improve. Although the new material has superior quality and feel, Rugged Life should not continue to use the new material in light of the unfavorable efficiencies. OB. Efficiencies have improved in the direction indicated by the production manager. Rugged Life should not continue to use the new material, though, since the overall efficiency variance is still unfavorable. OC. Efficiencies have improved in the direction indicated by the production manager but Rugged Life should not continue to use the new material. Use of the new material would require a change to the standard material price since the new material costs more than the old. Making this change to the cost accounting system is complex and very expensive OD. Efficiencies have improved in the direction indicated by the production manager-but, it is unclear whether they are a trend or a one-time occurrence. Rugged Life should continue to use the new material, especially in light of its superior quality and feel; but it may want to re-examine the standard material price since the new material costs more than the old d manufa Data table s are as fo he data.) possible - X Life's May 202 variance for t get. This var the nearest ce ment on the May ave declined alth se the new mater have improved in t still unfavorable.. s have improved in t the standard materia es have improved in t ew material, especial 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: 300 18 yards at $4.65 per yard $83.70 2.4 hours at $12.50 per hour = $30.00 325 Direct materials Direct manufacturing labor 6,500 yards at $4.85 per yard = $31,525.00 715 hours at $12.60 per hour $9,009.00 d feel, Rugged Life h, since the overall Print Done e of the new materia ex and very expens ence. Rugged Life sh aterial costs more tha Time Remaining: 00:44:25 S (Click the icon to view additional information. for both i is variance est cent an the May 202 ned although w material in roved in the di orable. nroved in the di More info Rugged Life 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 2020. 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." Print Done - X ty and feel, Rugged Life hough, since the overall e 1. Use of the new material