Question

Happ Garden Supplies makes ground covers to prevent weed growth. During May, the company produced and sold 44,000 rolls and recorded the following cost data:
Requirements
1. Compute the price and efficiency variances for direct materials and direct labour.
2. For manufacturing overhead, compute the total variance, the flexible budget variance, and the production volume variance.
3. Prepare a standard cost income statement through gross profit to report all variances to management. Sales price was $10.60 per roll.
4. Happ Garden Supplies intentionally purchased cheaper materials during May. Was the decision wise? Discuss the trade-off between the two materials variances.


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  • CreatedApril 30, 2015
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