Case: Simple Jeans

Simple Jeans is preparing its budget for the next 12 months and uses zerobased budgeting. The budgeted sales price is $44.90 per unit and the budgeted volume of production and sales for the next 12 month period is 100,000 units. The material and labour requirements to produce one pair of jeans are as follows:

Direct Materials 2.5 m $6.50 per metre

Direct Labour 0.6 DLH $16.75 per labour hour

Machine hours are used to allocate both variable overheads and fixed overheads. Each pair of jeans uses 0.35 machine hours. The budgeted variable overhead costs are $1,170,000 while the budgeted fixed overhead costs are $356,200 for the year.

The picture attached below provided with the following detailed actual results and actual costs for the year.

Use the information to solve question A

Question 162 pts

Calculate the direct material price variance for Simple Jeans.

Give your answer in 2 decimal places and in absolute dollar value (negative not required).

Flag question: Question 17

Question 172 pts

Calculate the direct material usage variance for Simple Jeans.

Give your answer in 2 decimal places and in absolute dollar value (negative not required).

Flag question: Question 18

Question 182 pts

Calculate the direct labour rate variance for Simple Jeans.

Give your answer in 2 decimal places and in absolute dollar value (negative not required).

Flag question: Question 19

Question 192 pts

Calculate the direct labour efficiency variance for Simple Jeans.

Give your answer in 2 decimal places and in absolute dollar value (negative not required).

Flag question: Question 20

Question 202 pts

Calculate the variable overhead rate variance for Simple Jeans.

Give your answer in 2 decimal places and in absolute dollar value (negative not required).

fx Simple Jeans