Christine Wilson_ACG 3341-1_Individual_Week 8

# Christine Wilson_ACG 3341-1_Individual_Week 8 - ACG 3341-1...

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ACG 3341-1 Individual WEEK 8 CHRISTINE WILSON

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Exercise 7-22: Materials and manufacturing labor variances Consider the following data collected for Great Homes, Inc.: Direct Materials Direct Manufacturing Labor ncurred: Actual Inputs x Actual Prices \$200,000 \$90,000 Inputs x Standard Prices 214,000 86,000 rd Inputs Allowed for Actual Output x Standard Prices 225,000 80,000 Compute the price, efficiency, and flexible-budget variances for direct materials and direct manufacturing labor. Actual Costs Incurred (Actual Input Qty. × Actual Price) Actual Input Qty. × Budgeted Price Flexible Budget (Budgeted Input Qty. Allowed for Actual Output × Budgeted Price) Direct Materials \$200,000 \$214,000 \$225,000 \$14,000 F \$11,000 F Price Variance Efficiency Variance \$25,000 F Flexible-Budget Variance Direct \$90,000 \$86,000 \$80,000 Mfg. Labor \$4,000 U \$6,000 U Price Variance Efficiency Variance \$10,000 U Flexible-Budget Variance Exercise 7-23 : Direct materials and direct manufacturing labor variances Sally May Inc. designs and manufactures T-shirts. It sells its T-shirts to brand-name clothes retailers in lots of one dozen. Sally May’s May 2013 static budget and actual results for direct inputs are as follows: Static Budget Number of T-shirt lots (1 lot = 1 dozen) 400 Per Lot of T-shirts: Direct materials 14 meters at \$1.70 per meter = \$23.80 Direct manufacturing labor 1.6 hours at \$8.10 per hour = \$12.96 Actual Results Number of T-shirt lots sold 450
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