Bollinger Industries Manufactures Back-Packs

question 87

Essay

Bollinger Industries manufactures back-packs.Selected data regarding standard costs follow:
Actual selected results for the month of January are shown below:
Calculate the following variances:
(
A)direct labor price variance
(b)direct labor usage variance
(c)direct materials price variance
(d)direct materials usage variance
(e)direct materials inventory variance

• A)direct labor price variance (b)direct labor usage variance (c)direct materials price variance (d)direct materials usage variance (e)direct materials inventory variance

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Definitions:

Reported Results

Reported results are the financial outcomes that a company publicly announces, detailing its performance over a specific period, including revenue, expenses, and net income.

Sales

The total receipts from transactions involving the provision of goods or services to customers.

Residual Income

This refers to the amount of net income generated by a business in excess of its minimum expected return; it is a metric used to assess the excess profit compared to the equity capital invested.

Invested Assets

Financial assets and securities that a company or individual allocates funds to with the expectation of generating income or profit.