Reference no: EM132788438
Problem - Littrell Company produces chairs and has determined the following direct cost categories and budgeted amounts:
|
Category
|
Standard Inputs for 1 output
|
Standard Cost per input
|
|
Direct Materials
|
1.00
|
$7.50
|
|
Direct Labor
|
0.30
|
9.00
|
|
Direct Marketing
|
0.50
|
3.00
|
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 Labor:
Labor costs $11,470
Labor-hours of input 1,240
Actual price per hour $9.25
Direct Marketing Labor:
Labor costs $5,880
Labor-hours of input 2,100
Actual price per hour $2.80
Required -
a. What is the combined total of the flexible-budget variances?
b. What is the price variance of the direct materials?
c. What is the price variance of the direct manufacturing labor and the direct marketing labor, respectively?
d. What is the efficiency variance for direct materials?
e. What are the efficiency variances for direct manufacturing labor and direct marketing labor, respectively?