Yukon Coat Company makes women€™s and men€™s coats. Both products require filler and lining material. The following planning information has been made available:

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

The expected beginning inventory and desired ending inventory were realized.
1. Prepare the following variance analyses for each coat and 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 Women's Coats 2.2 lbs. 5.5 yds. 0.30 hr. Standard Price per Unit Men's Coats 3.5 lbs. 8.0 yds. 0.40 hr. Filler Liner $1.00 6.50 Standard labor time Women's Coats 3,000 units $12.50 per hr. Men's Coats Planned production Standard labor rate 5,000 units $11.00 per hr. Women's Coats 3,200 Actual Price per Unit $0.90 per Ib. 6.75 per yd. Actual Labor Rate $12.70 per hr. 11.20 per hr. Men's Coats Actual production 4,900 Actual Quantity Purchased and Used 24,800 Filler Liner Women's Coats Men's Coats 56,500 Actual Labor Hours Used 1,000 1,900