Question: Please answer with detail working with formula For the current year Foxborough Corp. budgeted to produce and sell 20,000 units. Foxborough's actually produced and sold

Please answer with detail working with formula

For the current year Foxborough Corp. budgeted to produce and sell 20,000 units. Foxborough's actually produced and sold 18,000 units. Other relevant data includes:

Direct Materials (all materials purchased were used):

Budgeted cost: $14.00 per pound.

Standard material allowed: 2.3 pounds per unit.

Actual materials cost $16.00 per pound for a total cost of $608,000.

Direct Manufacturing Labor:

Standard cost is 0.3 hours per unit at $34.00 per hour.

Actual labor hours used were 6,300 at a price of $32.50 per hour.

a. Calculate the direct materials price, efficiency, and flexible budget variances.

b. Give a possible cause or driver of the materials efficiency variance. Be specific.

c. Calculate the direct labor price, efficiency, and flexible budget variances.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Question ID 13882832 Part A Direct Materials Variances Given Data Actual units produced and sold 18000 units Standard material allowed per unit 23 pou... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!