XYZ Shirts' standard cost included 0.70 metres of direct material per t-shirt at $3.80 per metre....

XYZ Shirts' standard cost included 0.70 metres of direct material per t-shirt at $3.80 per metre. Hill actually used 32,500 metres of direct material at a cost of $3.75 per metre to produce 50,000 t-shirts.

Calculate the total, price and quantity variances
Create the journal entry(s) to reflect this situation
Explain what the variances mean, what could be creating these variances, how you would use these variances for bonus purposes and how you would use this information to inform the budget discussions for next year (This is the most important part of the question, please provide explanation that is easy to understand)

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ekkarill92 answered 10 months ago

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