The following data for DEF Company pertain to the production of 450 units of product X during June. Selected items are omitted because the costing records were lost in a computer breakdown. Direct Materials (All materials purchased were used.) Standard cost per unit: a grams at $4.00 per gram. Total actual cost: b grams costing $9,600. Standard cost allowed for units produced was S9,000. Materials price variance: c. Materials efficiency variance was $80 unfavorable. Direct Manufacturing Labor Standard cost is 3 hours per unit at $8.00 per hour. Actual cost per hour was $8.25. Total actual cost: d . Labor price variance: e Labor efficiency variance was $400 unfavorable. Requlred: a. Compute the missing elements in the report represented by the lettered items. b. How might a manager gain insight into the causes of a flexible-budget variance for direct materials, direct labor? What can be the potential reasons? What kind of corrective actions can be taken by the management? C. How does variance analysis help in continuous improvement?

The following data for DEF Company pertain to the production of 450 units of product X during June. Selected items are omitted because the costing records were lost in a computer breakdown. Direct Materials (All materials purchased were used.) Standard cost per unit: a grams at $4.00 per gram. Total actual cost: b grams costing $9,600. Standard cost allowed for units produced was S9,000. Materials price variance: c. Materials efficiency variance was $80 unfavorable. Direct Manufacturing Labor Standard cost is 3 hours per unit at $8.00 per hour. Actual cost per hour was $8.25. Total actual cost: d . Labor price variance: e Labor efficiency variance was $400 unfavorable. Requlred: a. Compute the missing elements in the report represented by the lettered items. b. How might a manager gain insight into the causes of a flexible-budget variance for direct materials, direct labor? What can be the potential reasons? What kind of corrective actions can be taken by the management? C. How does variance analysis help in continuous improvement?

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Description: The following data for DEF Company pertain to the production of 450 units of product X during June.Selected items are omitted because the costing records were lost in a computer breakdown.Direct Materials (All materials purchased were used.)Standard

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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