Question - Material and labor variance
Consider the following data for a manufacturing company direct material Direct
Actual price per unit of input 7.80 12
Standard price per unit of input 7.00 12.75
Standard inputs allowed per unit 10 2
Actual units of input 115,000 30,000
Actual units of output(product) 14,400 14,400
1. Compute the price, quantity, and flexible-bundle variances for direct material and direct labor. Use U or F to indicate whether the variances are unfavorable or favorable
2. Prepare a plausible explanation for the performance.