Hamper\'s Florals produced a special Mother\'s Day arrangement that included rig

Question

Hamper's Florals produced a special Mother's Day arrangement that included right roses. The standard and actual costs of the roses used in each arrangement follow. Hamper's Florals planned to make 750 arrangements but actually made 790. Determine the total flexible budget materials variance and indicate whether it is favorable (F) or unfavorable(U). Determine the materials price variance and indicate whether it is favorable (F) or unfavorable (U) Determine the materials usage variance and indicate whether it is favorable (F) or unfavorable (U) Confirm the accuracy of Requirement a, b and c by showing that the sum of the price and usage variances equals the total variance.

Explanation / Answer

a total variance standard- actual =4-3.96 0.04 its favourable b material price variance (standard price-actual price)*actual quantity =(0.50-0.48)x8.25 0.165 its favourable c material usage variance (standard qty-actual qty)*std price =(8-8.25)x0.5 -0.125 its unfavourable d d=b+c 0.04=0.165-0.125

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