I’m Really Cold Coat Company makes women’s and men’s coats. Both products require filler and lining material. The following planning information has been made available:

I’m Really Cold Coat Company does not expect there to be any beginning or ending inventories of filler and lining material. At the end of the budget year, I’m Really Cold Coat Company experienced the following actual results:

The expected beginning inventory and desired ending inventory were realized.

Instructions
1. Prepare the following variance analyses for both coats and the total, based on the actual results and production levels at the end of the budget year:
a. Direct materials price, quantity, and total variance.
b. Direct labor rate, time, and total variance.
2. Why are the standard amounts in part (1) based on the actual production at the end of the year instead of the planned production at the beginning of the year?

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Standard Amount per Unit Men's Coats 5.20 lbs. 9.40yds. 0.50 hr. Standard Price per Unit $2.00 per lb. 8.00 peryd. Women's Coats Filler Liner Standard labor time 4.0 lbs 7.00 yds. 0.40 hr Women's Coats Planned production Standard labor rate Men's Coats 6,200 units $13.00 per hr 5,000 units $14.00 perhr Women's Coats Men's Coats Actual production $,800 4,400 Actual Price per Unit Actual Quantity Purchased and Used $1.90 per Ib. 8.20 per yd 48,000 85,100 Liner Actual Labor Rate $1410 per hr 13.30 perhr Actual Labor Hours Used Women's coats Men's coats 1,825_ 2,800