Karim Comfort Company produces chairs and has determined the following direct cost categories and budgeted amounts:
Actual performance for the company is shown below:
Required:
a. What is the combined total of the flexible-budget variances?
b. What is the price variance of the direct materials?
c. What is the price variance of the direct manufacturing labor and the direct marketing labor, respectively?
d. What is the efficiency variance for direct materials?
e. What are the efficiency variances for direct manufacturing labor and direct marketing labor, respectively?

Question

Karim Comfort Company produces chairs and has determined the following direct cost categories and budgeted amounts:
  Actual performance for the company is shown below:
  Required:
a. What is the combined total of the flexible-budget variances?
b. What is the price variance of the direct materials?
c. What is the price variance of the direct manufacturing labor and the direct marketing labor, respectively?
d. What is the efficiency variance for direct materials?
e. What are the efficiency variances for direct manufacturing labor and direct marketing labor, respectively?

Quizplus · Accepted Answer

The Answer of Karim Comfort Company produces chairs and has determined the following direct cost categories and budgeted amounts:
  Actual performance for the company is shown below:
  Required:
a. What is the combined total of the flexible-budget variances?
b. What is the price variance of the direct materials?
c. What is the price variance of the direct manufacturing labor and the direct marketing labor, respectively?
d. What is the efficiency variance for direct materials?
e. What are the efficiency variances for direct manufacturing labor and direct marketing labor, respectively?

Karim Comfort Company Produces Chairs and Has Determined the Following