The blue part was the instructor's explanation in class.
o $771,066 U + $330,654 U = $1,101,719 U. In one sentence, interpret this variance. O On Table 7, the most expensive direct material is polyester fiber filling. Show the calculation for "Flex budget Actual Outputs," "Actual Inputs x Std Prices," and "Actual" for this material (Tables 1-3 will be helpful). Interpret the efficiency variance for polyester fiber filling in one sentence and the price variance for polyester fiber filling in one sentence. Q . . On Table 7, the largest cost is direct labor. Show the calculation for "Flex budget Actual Outputs," "Actual Inputs x Std Prices," and "Actual for direct labor (Tables 1-3 will be helpful). Interpret the efficiency variance for direct labor in one sentence and the price variance for direct labor in one sentence. Actual= 3668305 Table 3:448997 bus x 8.17 We spent more per hour than expected, excluding overtime premium (in variable overhead)-> 76329 U in variance becoz DL cost per hour was higher than expected Actual input x std price=3591976 Table 3: 448997 o 448997x8 . We made 325556 x DLH per bear we actually used=1.379 Efficiency variance: 466638U using more dlh per bear than expected Flexible budget= actual output x standard input to output ratio x std price per DLH= 3125338 Table 2: 1.2x8 1.2x8x325556=325556x9.6 390667x8-> standard dib/hours should have used to made 325556 bears On Table 7, another variable manufacturing cost is variable overhead. Note the last paragraph on page 2 about payments to employees especially the last sentence, "The overtime premium and the fringe benefits are carried as variable overhead costs. Show the calculation for "Flex budget Actual Outputs," "Actual Inputs x Std Prices," and "Actual" for variable overhead (Tables 1-3 will be helpful). Interpret the efficiency variance for variable overhead in one sentence and the price variance for variable overhead in one sentence. On Table 7, Matilda noticed that the designer box has a favorable efficiency variance. Is this favorable variance good news or bad news for Blue Steele Toy Company and why? . . O O o O Price and Efficiency Variances for Variable Manufacturing Costs Flex Budget Efficiency Actual Inputs Price Actual Outputs Variance Std Prices Variance 325,556 Actual Units sold 20,428 Variable productida costs: Direct materials Acrylic pile fabric 10-mm acrylic eyes 45-mm plastic joints Polyester fiber filling Woven label Designer Box Accessories Total direct materials Direct labor Variable overhead Total variable production costs 25,181 48,183 271,286 (5,564) 123,711 (1.926) 227,889 (43,294) 424,851 (74,189) 16,278 (145) 78,133 2,328 39,067 1,181,215 (122,789) 3,125,338 (466,638) 1.216,538 (181,639) 5,523,090 (771,066) 276,850 125,637 271,183 499,039 16,422 75,805 39,067 1,301,004 3,591,976 1,398,177 6,294,156 6,317 (26,946) 73,164 (76,329) (327.488) (330,654) 256,422 125,637 246,002 450,856 16,422 69,488 66,013 1.230,840 3,668,305 1.725,665 6,624,811
