Requirement 1. Calculate the direct materials and direct manufacturing labor price and efficiency variances in May 2017. What is the total flexible-budget variance for both inputs (direct materials and direct manufacturing labor) combined? What percentage is this variance of the total cost of direct materials and direct manufacturing labor in the flexible budget? Begin by calculating the direct materials and direct manufacturing labor price and efficiency variances in May 2017. Complete the actual results, price variance, and cost columns, then the efficiency variance and flexible budget columns. Label each variance as favorable or unfavorable. (Round all answers to the nearest cent.) May 2017 Units Direct materials Direct labor Total variance $ $ Actual Results Price Variance Actual Input Qty x Budgeted Price 425 10,200.00 $ 1.275.00 U $ 7,199.50 $ 93.50 US S 1,368.50 U 8,925.00 $ 7,106.00 $ S Efficiency Variance 1,190.00 US 646.00 F S 544.00 U The total flexible-budget variance for both inputs (direct materials and direct manufacturing labor) combined is $ This variance is Flexible Budget 425 7,735.00 7,752.00 % of the total cost of direct materials and direct manufacturing

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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Subject: accounting 

Requirement 1. Calculate the direct materials and direct manufacturing labor price and efficiency variances in May 2017. What is the total flexible-budget variance for both inputs (direct materials and direct manufacturing labor)
combined? What percentage is this variance of the total cost of direct materials and direct manufacturing labor in the flexible budget?
Begin by calculating the direct materials and direct manufacturing labor price and efficiency variances in May 2017. Complete the actual results, price variance, and cost columns, then the efficiency variance and flexible budget
columns. Label each variance as favorable or unfavorable. (Round all answers to the nearest cent.)
May 2017
Units
Direct materials
Direct labor
Total variance
$
$
Actual
Results
425
10,200.00 S
7,199.50 $
S
Price
Variance
Actual Input Qty x
Budgeted Price
1,275.00 U $
93.50 U$
1,368.50 U
8.925.00 $
7,106.00 $
$
Efficiency
Variance
1,190.00 US
646.00 F S
544.00 U
The total flexible-budget variance for both inputs (direct materials and direct manufacturing labor) combined is
$
This variance is
Flexible
Budget
425
7,735.00
7,752.00
% of the total cost of direct materials and direct manufacturing
Transcribed Image Text:Requirement 1. Calculate the direct materials and direct manufacturing labor price and efficiency variances in May 2017. What is the total flexible-budget variance for both inputs (direct materials and direct manufacturing labor) combined? What percentage is this variance of the total cost of direct materials and direct manufacturing labor in the flexible budget? Begin by calculating the direct materials and direct manufacturing labor price and efficiency variances in May 2017. Complete the actual results, price variance, and cost columns, then the efficiency variance and flexible budget columns. Label each variance as favorable or unfavorable. (Round all answers to the nearest cent.) May 2017 Units Direct materials Direct labor Total variance $ $ Actual Results 425 10,200.00 S 7,199.50 $ S Price Variance Actual Input Qty x Budgeted Price 1,275.00 U $ 93.50 U$ 1,368.50 U 8.925.00 $ 7,106.00 $ $ Efficiency Variance 1,190.00 US 646.00 F S 544.00 U The total flexible-budget variance for both inputs (direct materials and direct manufacturing labor) combined is $ This variance is Flexible Budget 425 7,735.00 7,752.00 % of the total cost of direct materials and direct manufacturing
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