During her internship, Maria struggled with standard cost variance analysis for some of the firm's clients....

 

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During her internship, Maria struggled with standard cost variance analysis for some of the firm's clients. Her supervisor suggested she approach it a different way: instead of calculating the variances using the standards and specific company details, she asked Maria to interpret the total amounts used in the variance framework to better see how everything fits together. Maria's supervisor selected one client at random and provided the following costs and descriptions to her trainee. Standard cost of DM purchased Standard cost of DL used Actual variable-MOH cost Applied fixed-MOH cost Flexible budget DM cost Actual DL cost Standard variable-MOH cost for actual cost driver used $17,780 28,690 6,390 10,350 15,600 29,550 6,030 Actual fixed-MOH cost Actual cost of DM purchased Flexible budget DL cost Standard cost of DM used Master budget fixed-MOH cost Flexible budget variable-MOH cost $9,830 17,210 28,030 16,540 10.030 6.550 (a) Using the costs described above, populate a complete variance analysis framework to calculate (1) price and efficiency variances for DM, DL, and variable-MOH and (2) price and volume variances for fixed-MOH. During her internship, Maria struggled with standard cost variance analysis for some of the firm's clients. Her supervisor suggested she approach it a different way: instead of calculating the variances using the standards and specific company details, she asked Maria to interpret the total amounts used in the variance framework to better see how everything fits together. Maria's supervisor selected one client at random and provided the following costs and descriptions to her trainee. Standard cost of DM purchased Standard cost of DL used Actual variable-MOH cost Applied fixed-MOH cost Flexible budget DM cost Actual DL cost Standard variable-MOH cost for actual cost driver used $17,780 28,690 6,390 10,350 15,600 29,550 6,030 Actual fixed-MOH cost Actual cost of DM purchased Flexible budget DL cost Standard cost of DM used Master budget fixed-MOH cost Flexible budget variable-MOH cost $9,830 17,210 28,030 16,540 10.030 6.550 (a) Using the costs described above, populate a complete variance analysis framework to calculate (1) price and efficiency variances for DM, DL, and variable-MOH and (2) price and volume variances for fixed-MOH.

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Calculate the variances using the costs provided Cost Component Actual Cost Standard Cost Variance D... View the full answer