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Austin manufactures embroidered jackets. The company prepares flexible budgets and uses a standard cost system to control manufacturing costs. The following standard unit cost of a jacket is based on the static budget volume of 14,400 jackets per month: E: (Click the icon to view the cost data.) Requirements Requirement 1. Compute the price and efficiency variances for direct materials and direct labour. Begin by determining the formula for the price variance, then compute the price variances for direct materials (DM) and direct labour (DL). (Enter the results as positive numbers. Label each variance as favourable (F) or unfavourable (U).) Actual price per input unit Standard price per input unit) Actual quantity of input Price variance DM 4.15 ) x 36400 5460 U DL ( 36400 42000 2 11200 4.30 Next, determine the formula for the efficiency variance, then compute the efficiency variances for direct materials (DM) and direct labour (DL). (Enter the results as positive numbers. Label each variance as favourable (F) or unfavourable (U).) Standard price per input unit Actual price per input unit ) x Standard quantity of input Efficiency variance DMC ) x DL 25800 28000 ) 9.70 21340 F Requirement 2. For manufacturing overhead, compute the total variance, the flexible budget variance, and the production volume variance. (Enter the results as positive numbers. Label each variance as favourable (F) or Choose from any list or enter any number in the input fields and then continue to the next question. standard unit cost of a jacket is based on the static budget volume of Data Table Austin manufactures embroidered jackets. The company prepares fle 14,400 jackets per month: E (Click the icon to view the cost data.) Requirements Actual overhead cost Flexible budget overhead for actual outputs Overhead flexible budget variance Production volume variance: Flexible budget overhead for actual outputs Standard overhead allocated to production Direct materials 3.0 sq.mx $4.15 per sq. m) $ 12.45 Direct labour ( 2 hours x $9.70 per hour) 19.40 Manufacturing overhead: Variable ( 2 hours x $0.68 per hour) $ 1.36 4.40 5.76 Fixed ( 2 hours x $2.20 per hour) $ 37.61 Total cost per jacket Data for November of the current year include the following: a. Actual production was 14,000 jackets. b. Actual direct materials usage was 2.60 m per jacket at an actual cost of $4.30 per m? c. Actual direct labour usage of 25,800 hours cost $252,840. d. Total actual overhead cost was $82,000. Production volume variance verall , was the decision wise? Explain Requirement 3. Austin's management intentionally purchased superi The favourable variances more than offset the unfavoura urable variances. If the superior materials decreased materials and labour usage, then Print Done Choose from any list or enter any number in the input fields and t
