Resset Company had the following results for April's operations: Findicates favorable and U indicates unfavorable. In...

Transcribed Image Text:

Resset Company had the following results for April's operations: Findicates favorable and U indicates unfavorable. In applying management by exception, the company investigates all variances of $400 or more. Direct materials price variance Direct materials quantity variance Direct labor rate variance Which variances will the company investigate? $ 350 F 2,550 U 350 U Direct labor efficiency variance Overhead controllable variance Overhead volume variance $ 400 F 2,450 U 550 F Item a. Direct materials price variance b. Direct materials quantity variance c. Direct labor rate variance d. Direct labor efficiency variance e. Overhead controllable variance f. Overhead volume variance Cost Do not investigate Investigate Management believes it has found a more efficient way to package its products and use less cardboard. This new approach will reduce shipping costs from $23.00 per shipment to $22.08 per shipment. (1) If the company budgets 2,800 shipments this year, what amount of total direct materials costs would appear on the shipping department's flexible budget? (2) How much is this sustainability improvement predicted to save in direct materials costs for this coming year 1. Budgeted direct materials 2. Cost savings Resset Company had the following results for April's operations: Findicates favorable and U indicates unfavorable. In applying management by exception, the company investigates all variances of $400 or more. Direct materials price variance Direct materials quantity variance Direct labor rate variance Which variances will the company investigate? $ 350 F 2,550 U 350 U Direct labor efficiency variance Overhead controllable variance Overhead volume variance $ 400 F 2,450 U 550 F Item a. Direct materials price variance b. Direct materials quantity variance c. Direct labor rate variance d. Direct labor efficiency variance e. Overhead controllable variance f. Overhead volume variance Cost Do not investigate Investigate Management believes it has found a more efficient way to package its products and use less cardboard. This new approach will reduce shipping costs from $23.00 per shipment to $22.08 per shipment. (1) If the company budgets 2,800 shipments this year, what amount of total direct materials costs would appear on the shipping department's flexible budget? (2) How much is this sustainability improvement predicted to save in direct materials costs for this coming year 1. Budgeted direct materials 2. Cost savings