Apple Valley Orchards, Inc. (AVO), developed standard costs for direct material and direct labor. In 2011, AVO estimated the following standard costs for one of their most well-loved products, the AVO classic Grandma's large apple pie which had a brown sugar coating on the top of the crust as well as including cranberry and mince ingredients in addition to the apples.

Budgeted quantity Budgeted price

Direct materials 1.5 pounds $7.25 per pound

Direct labor 0.25 hours $14.00 per hour

During September, AVO produced and sold 1,200 pies using 1,875 pounds of direct materials at an average cost per pound of $7.00 and 280 direct labor hours at an average wage of $14.25 per hour.

Circle F for favorable and U for unfavorable

1) September's direct material flexible-budget variance is: $______________ F or U

2) September's direct material price variance is: $______________F or U

3) September's direct material efficiency variance is: $______________F or U

4) September's direct labor flexible-budget variance is: $______________F or U

5) September's direct labor price variance is: $______________F or U

6) September's direct labor efficiency variance is: $______________F or U

Use the following information for questions 7-10

Wilson's Winter Woolens manufactures jackets and other wool clothing. A certain designed ski parka requires the following:

Direct materials standard 2 square yards at $13.50 per yard

Direct manufacturing labor standard 1.5 hours at $20.00 per hour

During the third quarter, the company made 1,500 parkas and used 3,150 square yards of fabric costing $39,375. Direct labor totaled 2,100 hours for $45,150.

Required:

The direct materials price and efficiency variances for the quarter is

7. Price $ ________________________________ F or U

8. Efficiency $________________________________ F or U

The direct manufacturing labor price and efficiency variances for the quarter.

9. Price $ ________________________________F or U

10. Efficiency $________________________________F or U

Answer rating: 100% (QA)

1 Septembers direct material flexiblebudget variance is 75 U 1875 700 1200 15 725 7500 U 2 September... View the full answer