Question:
Materials and manufacturing labor variances. Consider the following data collected for Great Homes, Inc.:
|
Direct Materials
|
Direct Manufacturing Labor
|
|
Cost incurred: Actual inputs x actual prices
|
$200,000
|
$90,000
|
|
Actual inputs x standard prices
|
214,000
|
86,000
|
|
Standard inputs allowed for actual output x standard prices
|
225,000
|
80,000
|
Compute the price, efficiency, and flexible-budget variances for direct materials and direct manufacturing labor.