The Following Direct Materials Variance Computations Are Incomplete

question 47

Essay

The following direct materials variance computations are incomplete.Fill in the missing values,and identify the direct materials flexible budget variance as favorable or unfavorable.
Direct materials price variance = ($? - $5)x 4,000 pounds = $4,000 U
Direct materials efficiency variance = (? - 3,800 pounds)x $5 = ? U
Direct materials flexible budget variance = $?

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Definitions:

Support Departments

Units within an organization providing essential services to profit centers or other departments, but not directly generating revenue.

Janitorial Department Costs

These are expenses related to the cleaning and maintenance of a company’s premises.

Performance Report

A document that compares actual work performance against planned or standard performance.

Support Department

An organizational unit that provides necessary services or support to the production and operational departments but is not directly involved in the primary business activities.