The company where Michael works produces skateboards locally but sells them globally for $60 each. Michael is one of theproduction managers in a meeting to discuss preliminary results from the year just ended. Here is the information they had in front ofthem:WoodWheelsDirect laborActual results:●●(a)DM-WoodDM-WheelsDL$Standard Quantityper Unit$2.00 feetQuantity of wood purchased, 135,500 feet; quantity of wood used, 130,500 feet.Quantity of wheels purchased, 308,160 wheels; quantity of wheels used, 291,160 wheels.Actual cost of the wood, $3.20 per foot.Actual cost of the wheels, $0.55 per wheel.Quantity of DL hours used, 18,560 hours; actual cost of DL hours, $15.80 per hour.Actual units produced, 58,000 skateboards.Complete a variance analysis for DM (both wood and wheels) and DL, determining the price and efficiency variances for each; besure to specify the amount and sign of each variance.$5.00 wheels0.30 hoursStandard Price$3.00per foot$0.50 per wheel$14.00 per hourPrice Variance$tA$$Efficiency Variance

Direct materials variance occurs when there is a difference between the actual price paid for…

(a) Complete a variance analysis for DM (both wood and wheels) and DL, determining the price and efficiency variances for each; be sure to specify the amount and sign of each variance. DM- Wood DM- Wheels DL $ $ $ Price Variance $ +A $ $ Efficiency Variance

(a) Complete a variance analysis for DM (both wood and wheels) and DL, determining the price and efficiency variances for each; be sure to specify the amount and sign of each variance. DM- Wood DM- Wheels DL $ $ $ Price Variance $ +A $ $ Efficiency Variance

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EA: Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on...

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