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Question - A furniture factory has recently expanded its product portfolio to include the production of leather sofas. Material costs per sofa are budgeted at £210, and direct labor costs at £450. The budgeted production for the first month was 40 sofas and one sofa was expected to take 15 hours of direct labor. Actual figures for the first month are as follows: Sofas completed: 24 Labour hours worked: 560 Total direct labour costs: £16,200 Total material costs: £7,200
Required -
a. Determine the total direct materials flexible-budget variance.
b. Determine the total direct labour flexible-budget variance.
c. Determine the direct labor price variance.
d. Determine the direct labour efficiency variance.
You ere anxiously waiting if you did make or beak the CPA Licensure Examination. After a day, judgment has been serve by PRC-Board of Accountancy by releasing.
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