PLEASE USE THE FORMAT PROVIDED BELOW FOR THE PROBLEM!

Material and Direct-Labor Variances CHAPTER 8 FLEXIBLE BUDGETS AND VARIANCE ANALYSis ine Instruments manufactures trumpets, trombones, tubas, and other brass instruments. The fol- n standards were developed for a line of trumpets: Standard Inputs Expected for Each Unit of Output Achieved 5 pounds 10 hours Standard Price per Unit of Input $10 per pound $25 per hour Direct materials 350 Direct labor During April, Hill scheduled 550 trumpets for production. However, the company produced only 525 Hill purchased and used 3,100 pounds of direct materials at a unit price of $9.00 per pound. It used 5,500 hours of direct labor at an actual rate of $26.00 per hour. I. C ompute the standard cost per trumpet for direct materials and direct labor. Compute the price variances and quantity variances for direct materials and direct labor. Based on these sketchy data, what clues for investigation are provided by the variances? 3. -BL Su ce Reports Use this format A ! Actual Cost Incurred: Actual Input Quantities x Actual Prices $xxx Flexible Budget: Standard Input Quantities Allowed for Outputs Achieved Standard Prices $zzz Actual Input Quantities Standard Prices Syyy In general Price variance Quantity variance (B-C) (A - B) Flexible-budget variance (A - C)