Question

Smart Sets manufactures headphone cases. During September 2016, the company produced 108,000 cases and recorded the following cost data:
Requirements
1. Compute the cost and efficiency variances for direct materials and direct labor.
2. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances.
3. Smart Sets’s management used better-quality materials during September. Discuss the trade-off between the two direct material variances.


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  • CreatedJune 15, 2015
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