FigByte Company's standard and actual costs per unit for the most recent period, during which 800...

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FigByte Company's standard and actual costs per unit for the most recent period, during which 800 units were actually produced, are given below: Static Budget Actual Cost (700 units) Materials: Standard: $1.30 per m. Actual: $1.25 per m. $2,730.00 $4,000.00 Direct labour: Standard: $16.00 per hr. Actual: $15.00 per hr. $42,560.00 $48,000.00 Variable overhead: Standard: $2.50 per hr. Actual: $2.00 per hr. $6,650.00 $6,400.00 $58,400.00 $51,940.00 Total unit cost There was no inventory of materials at the beginning or end of the period. Required: a) What are FigByte's standard and budgeted number of metres per unit? (1 mark) b) What is FigByte's flexible budget variance? (2 marks) c) Is the relationship between the component materials variances (price & efficiency) consistent with your expectations? Suggest two potential causes of the relationship between the two variances. You will not receive full marks for discussing the variances in isolation (3 marks) d) What is FigByte's direct labour efficiency variance? (2 marks) e) What is FigByte's direct labour spending variance? (2 marks) f) Using the labour spending variance calculated in part e, offer one potential cause for the labour efficiency variance you calculated in part d. (1 mark) g) What is FigByte's variable overhead spending variance? (2 marks) h) What is FigByte's variable overhead efficiency variance? (2 marks) i) "When the cost driver is direct labour, the variable overhead efficiency variance and the direct labour efficiency variance will always have the same impact on net income (Favourable or Unfavourable)." Do you agree with this statement? Explain why or why not. (4 marks) FigByte Company's standard and actual costs per unit for the most recent period, during which 800 units were actually produced, are given below: Static Budget Actual Cost (700 units) Materials: Standard: $1.30 per m. Actual: $1.25 per m. $2,730.00 $4,000.00 Direct labour: Standard: $16.00 per hr. Actual: $15.00 per hr. $42,560.00 $48,000.00 Variable overhead: Standard: $2.50 per hr. Actual: $2.00 per hr. $6,650.00 $6,400.00 $58,400.00 $51,940.00 Total unit cost There was no inventory of materials at the beginning or end of the period. Required: a) What are FigByte's standard and budgeted number of metres per unit? (1 mark) b) What is FigByte's flexible budget variance? (2 marks) c) Is the relationship between the component materials variances (price & efficiency) consistent with your expectations? Suggest two potential causes of the relationship between the two variances. You will not receive full marks for discussing the variances in isolation (3 marks) d) What is FigByte's direct labour efficiency variance? (2 marks) e) What is FigByte's direct labour spending variance? (2 marks) f) Using the labour spending variance calculated in part e, offer one potential cause for the labour efficiency variance you calculated in part d. (1 mark) g) What is FigByte's variable overhead spending variance? (2 marks) h) What is FigByte's variable overhead efficiency variance? (2 marks) i) "When the cost driver is direct labour, the variable overhead efficiency variance and the direct labour efficiency variance will always have the same impact on net income (Favourable or Unfavourable)." Do you agree with this statement? Explain why or why not. (4 marks)

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a Standard and budgeted number of meters per unit 30 2730700 units130 b Flexible budget variance is ... View the full answer