Materials and manufacturing labor variances. Consider the ...

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Materials and manufacturing labor variances.
 
  Consider the following data collected for Great Homes, Inc.:
 
  Required:
  Compute the price, efficiency, and flexible-budget variances for direct materials and direct manufacturing labor.

Question 2

GAAP-based financial statements are prepared according to the accrual basis of accounting.
 
  Indicate whether the statement is true or false

[swimkari]

Answer to Question 1

Actual Costs
Incurred
(Actual Input Qty.
 Actual Price)

Actual Input Qty.
 Budgeted Price Flexible Budget
(Budgeted Input
Qty. Allowed for
Actual Output
 Budgeted Price)
Direct
Materials 200,000 214,000 225,000

14,000 F 11,000 F
Price variance Efficiency variance
25,000 F
Flexible-budget variance

Direct 90,000 86,000 80,000
Mfg. Labor 4,000 U 6,000 U
Price variance Efficiency variance
10,000 U
Flexible-budget variance

Answer to Question 2

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Thanks for the timely response, appreciate it

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Excellent