In December of Year 2 operations (month 24), Memories, Inc. actually produced and sold 32,675 figurines, consisting
Fantastic news! We've Found the answer you've been seeking!
Question:
In December of Year 2 operations (month 24), Memories, Inc. actually produced and sold 32,675 figurines, consisting of 30,570 dolls and 2,105 replicas, The budgeted sales price for dolls was $5.00, and $5.25 for replicas. The estimated production and sales during December was 31,678 dolls and 2,595 replicas.
Compute the labor rate and efficiency variances for each type of figurine. MI paid $71,350 in labor costs for 7,150 direct labor hours for dolls and $6,425 in labor costs for 650 direct labor hours for replicas. How would these variances be interpreted? What might have caused them? Would you consider them large enough to be important?
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
Posted Date: