Homework: chapterHW Score: 0 of 20 pts E7-28 (similar to) Save 5 of 6 (5 complet
ID: 2513469 • Letter: H
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Homework: chapterHW Score: 0 of 20 pts E7-28 (similar to) Save 5 of 6 (5 complete) ? Hw Score: 37.27%, 52.17 of 140 pts Question Help Donna Ann, Inc. designs and manufactures fleece quarter-zip jackets. It sells its jackets to brand-name outdoor outfitters in lots of one dozen. Donna Ann's May 2017 static budget and actual results for direct inputs are as follows: ?(Click the icon to view additional information.) (Click the icon to view the data) Read the requirements Requirement 1. Calculate the direct materials and direct manufacturing labor price and efficiency variances in May 2017. What is the total flexible-budget variance for bth inputs (direct materials and direct manufacturing labor) combined? What percentage is this variance of the total cost of direct materials and direct manufacturing labor in the flexible budget? Begin by calculating the direct materials and direct manufacturing labor price and efficiency variances in May 2017. Complete the actual results, price variance, and cost columns, then the efficiency variance and fexible budget columns. Label each variance as favorable or unfavorable. (Round all answers to the nearest cent.) Data Table Actual Price Actual Input Qty x Budgeted Price May 2017 Units Direct materials Direct labor Total variance Results Variance Static Budget Number of jacket lots (1 lot Per Lot of Jackets: Direct materials Direct manufacturing labor Actual Results Number of jacket lots sold Total Direct Inputs Direct materials Direct manufacturing labor 1 dozen) 500 12 yards at $1.20 per yard $14.40 1.8 hours at $7.90 per hour $14.22 525 1. Calculate the direct materials and direct manufacturing labor price and efficiency variances in May 2017. What is the total flexible-budget variance for both inputs (direct materials and direct manufacturing labor) combined? What percentage is this variance of the total cost of 7,350 yards at $1.40 per yard $10,290.00 840 hours at $8.00 per hour S6,720.00 direct materials and direct manufacturing labor in the flexible budget? 2. Comment on the May 2017 results. Would you continue the "experiment of using the new More Info Print Done Donna Ann has a policy of analyzing all input variances when they add up to more than 8% of the total cost of materials and labor in the fiexible budget, and this is true in May 2017. The production manager discusses the sources of the variances: A new type of material was purchased in May. This led to faster cutting and sewing, but the workers used more material than usual as they leaned to work with it. For now, the standards are fine. Choose from any list or enter any number in the input fields and then click Check Answer. Check Answer remainingExplanation / Answer
Static Budget for 500 Lots lots Budget for 525 lots Jackets sold Actual Results Price Quantity/ Hrs Cost Price Quantity/ Hrs Cost Price Quantity/ Hrs Cost Material 1.2 6000 7200 1.2 6300 7560 1.4 7350 10290 Labour 7.9 900 7110 7.9 945 7465.5 8 840 6720 For Static Budget Direct Material Price Variance= (Standard Price- Actual Price)* Actual Quantitry = -1470 Unfavorable Direct Material Efficiency Variance= (Standard Qty- Actual Qty)* Std Price = -1620 Unfavorable Direct Labour Price Variance= (Standard Price- Actual Price)* Actual Hrs -84 Unfavorable Direct Labour Efficiency Variance= (Standard Hrs- Actual Hrs)* Std Price 474 Favorable For Flexible Budget Direct Material Price Variance= (Standard Price- Actual Price)* Actual Quantitry = -1470 Unfavorable Direct Material Efficiency Variance= (Standard Qty- Actual Qty)* Std Price = -1260 Unfavorable Total Direct Material Variance -2730 Unfavorable Direct Labour Price Variance= (Standard Price- Actual Price)* Actual Hrs -84 Unfavorable Direct Labour Efficiency Variance= (Standard Hrs- Actual Hrs)* Std Price 829.5 Favorable Total Direct Labour Variance 745.5 Favorable Total Flexible Budget Variance -1984.5 Total Direct Material Variance -2730 137.57% Total Direct Labour Variance 745.5 -37.57% In May, the cost is more by 1984.5 than budgeted Ye we would continue to experiment, as now the labour would have learnt how to effectively use the material Also, the labour efficiency variance is favourable which suggest it has led to improve in labour's efficiency
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