Manufacturing firm developed standard costs for direct material and direct labor. In 2020, thefirm estimated the following standard costs for one of their major products (tables).Budgeted quantityBudgeted priceDirect materials 0.15 meters$40 per meter of woodDirect labor2 hours$20 per hourDuring January , the firm produced and sold 10,000 tabtes using 800 meter of direct materialsat an average cost per meter of $20 and 300 direct manufacturing labor-hours at an averagewage of $16 per hour.Required : Answer the following questions using the preceding Information:+ what is the direct material flexible-budget variance?2- what is the direct material price variance?3- what is the firm's direct manufacturing labar price variance?4- what is the direct manufacturing labor efficiency variance?

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Description: Manufacturing firm developed standard costs for direct material and direct labor. In 2020, thefirm estimated the following standard costs for one of their major products (tables).Budgeted quantityBudgeted priceDirect materials 0.15 meters$40 per met

Variable cost includes all costs that vary directly with the volume of output. That is, variable…

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Manufacturing firm developed standard costs for direct material and direct labor. In 2020, the Firm estimated the following standard costs for one of their major products (tables). dprioo

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 1PA: Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and...

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