At the End of the Current Year,Bowman Products Has the Following

question 98

Essay

At the end of the current year,Bowman Products has the following information available comparing the cost of direct materials on its flexible budget with the actual cost of direct materials:
$\begin{array}{lr} &\underline{ \text { Flexible budget}} &\underline{\text {Actual results} } &\underline{ \text { Difference} } &\\ \text { Direct materials } &\$24000&\$30000&(6000)\\\end{array}$

Sally Vincent,the company's controller,has requested a meeting with Hank Rowland,the operations manager,asking him to explain why direct materials costs were more than what had been budgeted.
What two kinds of variance analysis should Hank do before his meeting with Sally? What would each of these variances measure?

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Definitions:

Sexual Relationships

Intimate connections between individuals that often include physical and emotional intimacy, as well as sexual activity.

Common Ancestor

An ancestral form or species from which two or more descendant species evolved.

Theory of Evolution

A scientific theory proposing that species change over time through natural selection and genetic variations.

Nature and Nurture

The debate concerning the relative importance of an individual's innate qualities versus personal experiences in determining or causing differences in physical and behavioral traits.