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Question - Swim-Time uses standard cost accounting. In August, Swim-Time installed 10 pools at a total variable cost of $90,000 after it had budgeted $82,000. The direct material standard is 60 cubic meters of concrete to build one pool at a standard price of $100 per cubic meter. The direct labour standard is 110 hours at $20/hour. Total labour time in August was 1,000 hours at a total cost of $27,000. Total direct material cost was $63,000 and the price of concrete for the month was $105 per cubic meter. Compute the price and efficiency (quantity) variances for direct labour and direct materials. Label the variances as favorable (F) or unfavorable (U).
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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