Maldive Designs Makes Chair Cushions

question 27

Essay

Maldive Designs makes chair cushions.The standard direct materials quantity is 0.8 kilogram per cushion at a cost of $2.70 per kilogram.The actual results for the production of 15,000 cushions was 0.75 kilograms per cushion, at a cost of $2.65 per kilogram.Calculate the direct materials input rate variance and the direct materials efficiency variance.

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Definitions:

Paralegal

A trained legal assistant who performs various tasks to support lawyers, including legal research, drafting documents, and organizing files, but is not qualified to offer legal advice or represent clients.

Attorney

A person licensed to practice law and represent clients in legal matters.

Consumer Surplus

The variance between the total price consumers are inclined and able to pay for a good or service, compared to what they really pay.

Price Ceilings

A government-imposed limit on how high a price can be charged for a product, service, or resource, aimed at protecting consumers from excessive pricing.