Too Cool Corporation produces portable air conditioning systems and had the following data available:

Q:

1. Prepare (i.e. complete) the performance report above; speculate and describe a possible cause for each variance (except for direct materials and direct labor) and then suggest a specific follow-up action for each.

2. In order to get a better control over the amounts spent on direct materials and direct labor, the company had previously implemented the following standards and achieved the corresponding results when 6,200 units were produced:

Calculate the price and quantity variance for direct materials and direct labor; as needed, round final calculations (i.e. each variance) to the nearest whole dollar.

3. Given your results to part B above, speculate and describe a possible cause for each price and quantity variance and suggest a specific follow-up action for each.

Sales $11,800,000Budget$11,000,000Actual Less operating expenses Advertising 16,00018,000 Less production expenses Direct materia Direct labor Prepare (i.e. complete) the performance report above; speculate and describe a possible cause for each varianc (except for direct materials and direct labor) and then suggest a specific follow-up action for each. In order to get a better control over the amounts spent on direct materials and direct labor, the company had previously implemented the following standards and achieved the corresponding results when 6,200 units were produced: Calculate the price and quantity variance for direct materials and direct labor; as needed, round final calculations (i.e. each variance) to the nearest whole dollar. C. Given your results to part B above, speculate and describe a possible cause for each price and quantity variance and suggest a specific follow-up action for each