Reference no: EM132565555

Company produces chairs and has determined the following direct cost categories and budgeted amounts:

                                Standard Inputs               Standard Cost

                                      Category for 1                  output per input

Direct Materials                 1.00                          $7.00

Direct Labour                      0.30                         8.00

Direct Marketing                    0.50                           3.50

Actual performance for the company is shown below:

Actual output: (in units)4,000

Direct Materials:

Materials costs $30,225

Input purchased and used 3,900

Actual price per input $7.75

Direct Manufacturing Labour:

Labour costs $11,470

Labour-hours of input 1,240

Actual price per hour $9.25

Direct Marketing Labour:

Labour costs$5,880

Labour-hours of input2,100

Actual price per hour$2.80

Required:

Question 1: What is the combined total of the flexible-budget variances?

Question 2: What is the rate variance of the direct materials?

Question 3: What is the rate variance of the direct manufacturing labour and the direct marketing labour, respectively?

Question 4: What is the efficiency variance for direct materials?

Question 5: What are the efficiency variances for direct manufacturing labour and direct marketing labour, respectively?