Hh1.Need help with DM Price variance percentage Your answer is partially correct.Assume the company's threshold for determining the materiality of each variance is 5% of its flexible budget cost. Calculate thesignificance level of each DM variance in comparison to the DM flexible budget cost. Calculate the significance level of each DLvariance in comparison to the DL flexible budget cost. Compare each variance's significance level to the company's threshold of5%. Which of these variances (if any) are concerning (i.e., material) to the company? (Round answers to 2 decimal places, e.g.15.25%.)DM price varianceDM efficiency varianceDL price varianceDL efficiency variance2.44 %4.76%0.32 %8.43 %Not MaterialNot MaterialNot MaterialMaterial The trial balance for Novak Corporation shows the following for its DM and DL variances at year-end, prior to closing entries.DM price varianceDM efficiency varianceDL price varianceDL efficiency varianceDebit$10,60061016,010Credit$5,840Throughout the year, actual purchase costs for DM totaled $233,900; transfers of DM cost into production totaled $233,100. Thetotal flexible budget DL cost was $189,900 this year.

Cost variance is a cost management term that refers to the difference between the budgeted cost for…

Assume the company's threshold for determining the materiality of each variance is 5% of its flexible budget cost. Calculate the significance level of each DM variance in comparison to the DM flexible budget cost. Calculate the significance level of each DL variance in comparison to the DL flexible budget cost. Compare each variance's significance level to the company's threshold of 5%. Which of these variances (if any) are concerning (i.e., material) to the company? (Round answers to 2 decimal places, e.g. 15.25%.)

Assume the company's threshold for determining the materiality of each variance is 5% of its flexible budget cost. Calculate the significance level of each DM variance in comparison to the DM flexible budget cost. Calculate the significance level of each DL variance in comparison to the DL flexible budget cost. Compare each variance's significance level to the company's threshold of 5%. Which of these variances (if any) are concerning (i.e., material) to the company? (Round answers to 2 decimal places, e.g. 15.25%.)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 19E: Data for Torleson Company are as follows: Required: 1. Calculate the sales price variance. 2....

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