Having joined the company as a fresh graduate, the CFO call you to her office an gave you a report that showsthe direct cost categories and budgeted amounts for the widgets that your company manufactures:Standard CostsInput per One output unit Cost per inputDirect Materials1.00 KG$7.50/KGDirect Labor0.30 HR$9.00/HRDirect Marketing0.50 HR$3.00/HRActual performance for the company is shown below based on 4,000 Actual Unit produced:Direct Materials:Direct Manufacturing labor: Direct Marketing labor:Materials costsLabor costs $11,470Labor costs $5,880$30,225Labor-hours of inputLabor-hours of inputInput purchased and used1,2402,1003,900Actual price per hourActual price perActual price per input$9.25hour$2.80$7.75Required:Prepare a report to address the following requirement s below and explain the potential causes of variances ifthey exist1. What is the combined total of the flexible-budget variances?2. What is the rate variance of the direct materials?3. What is the rate variance of the direct manufacturing labor and the direct marketing labor, respectively?4. What is the efficiency variance for direct materials?5. What are the efficiency variances for direct manufacturing labor and direct marketing labor, respectively?

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Description: Having joined the company as a fresh graduate, the CFO call you to her office an gave you a report that showsthe direct cost categories and budgeted amounts for the widgets that your company manufactures:Standard CostsInput per One output unit Cost

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Having joined the company as a fresh graduate , the CFO call you to her office an gave you a report that shows the direct cost categories and budgeted amounts for the widgets that your company manufactures: Standard Costs Input per One output unit Cost per input Direct Materials 1.00 KG $7.50/KG Direct Labor 0.30 HR $9.00/HR Direct Marketing 0.50 HR $3.00/HR Actual performance for the company is shown below based on 4,000 Actual Unit produced: Direct Materials: Direct Manufacturing labor: Direct Marketing labor: Materials costs Labor costs $11,470 Labor costs $5,880 $30,225 Labor-hours of input Labor-hours of input Input purchased and used 3,900 1,240 2,100 Actual price per hour Actual price per Actual price per input $9.25 hour $2.80 $7.75

Having joined the company as a fresh graduate , the CFO call you to her office an gave you a report that shows the direct cost categories and budgeted amounts for the widgets that your company manufactures: Standard Costs Input per One output unit Cost per input Direct Materials 1.00 KG $7.50/KG Direct Labor 0.30 HR $9.00/HR Direct Marketing 0.50 HR $3.00/HR Actual performance for the company is shown below based on 4,000 Actual Unit produced: Direct Materials: Direct Manufacturing labor: Direct Marketing labor: Materials costs Labor costs $11,470 Labor costs $5,880 $30,225 Labor-hours of input Labor-hours of input Input purchased and used 3,900 1,240 2,100 Actual price per hour Actual price per Actual price per input $9.25 hour $2.80 $7.75

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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