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In: Accounting

Compute the​ price, quantity, and​ flexible-budget variances for direct materials and direct labor. Use U or...

Compute the​ price, quantity, and​ flexible-budget variances for direct materials and direct labor. Use U or F to indicate whether the variances are unfavorable or favorable.

1. Begin by completing the variance analysis below for direct materials. Be sure to label each variance as favorable or unfavorable. ​(Enter all amounts as positive numbers. Round your answers to the nearest whole​ dollar.)

2. Prepare a plausible explanation for the performance.

Direct Materials Direct Labor
Actual price per unit of input (lb & hr) 10.75 14.2
Standard Price Per unit of input 10 15
Standard inputs allowed per unit of output 12 4
actual units of input 144600 57350
actual units of output (product) 14300 14300

are a plausible explanation for the performance.

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Expert Solution

ekkarill92 answered 2 years ago
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