Fosse Manufacturing Company Has Developed the Following Standards for One

question 10

Essay

Fosse Manufacturing Company has developed the following standards for one of their products:
The company records materials price variances at the time of purchase.
The following activities occurred during the month of May:
Required:

a.
Calculate the materials price variance and indicate whether it is favorable or unfavorable.
b.
Calculate the materials usage variance and indicate whether it is favorable or unfavorable.
c.
Calculate the labour rate variance and indicate whether it is favorable or unfavorable.
d.
Calculate the labour efficiency variance and indicate whether it is favorable or unfavorable.
e.
Calculate the variable overhead spending (expenditure) variance and indicate whether it is favorable or unfavorable.

f. Calculate the variable overhead efficiency variance and indicate whether it is favorable or unfavorable.

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Definitions:

Communication Noise

Any external or internal interference that disrupts the clarity, transmission, or reception of a message.

Interrupts

Unscheduled or unexpected disturbances that break the continuity of an activity or communication flow.

Transmission

The action or process of transmitting something (e.g., data, diseases, mechanical power) from one place, person, or thing to another.

Economical

Characterized by efficiency of resource use, often aiming to minimize cost while maximizing output.