Exercise 8-11A (Algo) Determining materials price and usage variances LO 8-6 Monique's Florals produced a special Mother's Day arrangement that included eight roses. The standard and actual costs of the rose used in each arrangement follow: bok Average number of roses per arrangement Standard 9.10 Price per rose x $ 0.90 Actual 9.50 * $ 0.84 nt Cost of roses per arrangement $ 8.19 $ 7.98 int Monique's Florals planned to make 805 arrangements but actually made 900. Required a. Determine the total flexible budget materials variance and indicate whether it is favorable (F) or unfavorable (U). b. Determine the materials price variance and indicate whether it is favorable (F) or unfavorable (U). c. Determine the materials usage variance and indicate whether it is favorable (F) or unfavorable (U). d. Confirm the accuracy of Requirements a, b, and c by showing that the sum of the price and usage variances equals the total variance.
Exercise 8-11A (Algo) Determining materials price and usage variances LO 8-6 Monique's Florals produced a special Mother's Day arrangement that included eight roses. The standard and actual costs of the rose used in each arrangement follow: bok Average number of roses per arrangement Standard 9.10 Price per rose x $ 0.90 Actual 9.50 * $ 0.84 nt Cost of roses per arrangement $ 8.19 $ 7.98 int Monique's Florals planned to make 805 arrangements but actually made 900. Required a. Determine the total flexible budget materials variance and indicate whether it is favorable (F) or unfavorable (U). b. Determine the materials price variance and indicate whether it is favorable (F) or unfavorable (U). c. Determine the materials usage variance and indicate whether it is favorable (F) or unfavorable (U). d. Confirm the accuracy of Requirements a, b, and c by showing that the sum of the price and usage variances equals the total variance.
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Exercise 8-11A (Algo) Determining materials price and usage variances LO 8-6
Monique's Florals produced a special Mother's Day arrangement that included eight roses. The standard and actual costs of the roses
used in each arrangement follow:
Ook
Average number of roses per arrangement
Standard
9.10
Actual
9.50
Price per rose
x $ 0.90
* $ 0.84
int
Cost of roses per arrangement
$ 8.19
$ 7.98
int
Monique's Florals planned to make 805 arrangements but actually made 900.
Required
a. Determine the total flexible budget materials variance and indicate whether it is favorable (F) or unfavorable (U).
b. Determine the materials price variance and indicate whether it is favorable (F) or unfavorable (U).
c. Determine the materials usage variance and indicate whether it is favorable (F) or unfavorable (U).
d. Confirm the accuracy of Requirements a, b, and c by showing that the sum of the price and usage variances equals the total
variance.
Complete this question by entering your answers in the tabs below.
Req A to C
Req D
a. Determine the total flexible budget materials variance and indicate whether it is favorable (F) or unfavorable (U).
b. Determine the materials price variance and indicate whether it is favorable (F) or unfavorable (U).
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