Illustrate the variances observed between the planned and actual values for the direct labor time and the direct materials price for collars. What changed?

Share a summary of your variance analysis. Were the variances favorable or unfavorable?

Evaluate the significance of the variances. Are the variances favorable or unfavorable? What does it mean?
Explain whether and how your evaluation will affect your budgeting and planning decisions for the next month or quarter.

Data for Variance Analysis:
	Budgeted (Standard) Hours/Qty	Budgeted (Standard) Rate	Actual Hours/Qty	Actual Rate
Labor	160	$ 14.67	180	$ 16.50
Materials	6,188	$ 3.23	1,600	$ 10.00
Variances for Collar Sales
			Variance	Favorable/ Unfavorable
Direct Labor Time Variance
(Actual Hours - Standard Hours) x Standard Rate			$ 293.40	Unfavorable
Direct Labor Rate Variance
(Actual Rate - Standard Rate) x Actual Hours			$ 329.40	Unfavorable
Direct Materials Quantity/Efficiency Variance
(Actual Quantity - Standard Quantity) x Standard Price			$ (14,819.24)	Favorable
Direct Materials Price Variance
(Actual Price - Standard Price) x Actual Quantity			$ 10,832.00	Unfavorable

Answer rating: 100% (QA)

1 Direct Labor Time Variance Standard Hours 160 hours Standard Rate 1467 per hour Actual Hours 180 hours Actual Rate 1650 per hour Variance Calculation Actual Hours Standard Hours Standard Rate 180 ho... View the full answer