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Evan Farms manufactures the bags of frozen french fries used at many restaurants. Last week, Evan Farms purchased (transferred in from its potato farms) and used 102,000 kg of potatoes at a price of $0.80 per kilogram. During the week, 2,300 direct labour hours were incurred in the plant at a rate of $12.45 per hour. The standard price per kilogram of potatoes is $1.00, and the standard direct labour rate is $12.20 per hour. Standards indicate that for the number of bags of frozen fries produced, the factory should have used 98,000 kg of potatoes and 2,100 hours of direct labour. Requirements 1. Determine the direct materials price and efficiency variances. Be sure to label each variance as favourable or unfavourable. 2. Think of a plausible explanation for the variances found in Requirement 1. 3. Determine the direct labour price and efficiency variances. Be sure to label each variance as favourable or unfavourable. 4. Could the explanation for the labour variances be tied to the material variances? Explain. Requirement 1. Determine the direct materials price and efficiency variances. Be sure to label each variance as favourable or unfavourable. (Enter the results as positive numbers.) Direct Materials Price Variance Direct Materials Efficiency Variance Choose from any list or enter any number in the input fields and then continue to the next question Requirement 2. Think of a plausible explanation for the variances found in Requirement 1. One plausible explanation is that Evan Farms bought V price, which resulted in the price variance. However, because the potatoes were V As a result, the manufacturing facility potatoes than standards allow. This accounts for the efficiency variance. Requirement 3. Determine the direct labour price and efficiency variances. Be sure to label each variance as favourable or unfavourable. (Enter the results as positive numbers.) Direct Labour Price Variance Direct Labour Efficiency Variance Requirement 4. Could the explanation for the labour variances be tied to the material variances? Explain. Evan Farms manufactures the bags of frozen french fries used at many restaurants. Last week, , . V manufacturing facility efficiency variance. potatoes than standards allow. This accounts for the Requirement 3. Determine the direct labour price and efficiency variances. Be sure to label each variance as favourable or unfavourable. (Enter the results as positive numbers.) Direct Labour Price Variance Direct Labour Efficiency Variance Requirement 4. Could the explanation for the labour variances be tied to the material variances? Explain. The labour price and efficiency variances be tied to the material variances th then the For e ariances were the result of purchasing facto V labour in sorting the potatoes. As a result, it would have had to pay favourable unfavourable Choo any number in the input fields and then continue to the next question. This Test: 11 Exam arms manufactures the bags of frozen french fries used at many restaurants. Last ... roa potatoes than standards allow. This accou acturing facility efficiency variance. ement 3. Determine the direct labour price and efficiency variances. Be sure to lat e as favourable or unfavourable. (Enter the results as positive numbers.) Labour Price Variance Labour Efficiency Variance ement 4. Could the explanation for the labour variances be tied to the material vari be tied to the materi labour price and efficiency variances mple, if the material variances were the result of pi would use labour in sorting sult, it would kers could could not from any list or enter any number in the input f nue to the Labour Price Variance Direct Labour Efficiency Variance Requirement 4. Could the explanation for the labour variances be tied to the material variances? Explain. The V labour price and efficiency variances be tied to the material variances. For example, if the material variances were the result of purchasing then the They factory would use labour in sorting the potato pay workers higher grade potatoes Choose from any list or enter any number in the input fields and on lower grade potatoes variance as favourable or unfavourable. (Enter the results as positive numbers.) Direct Labour Pric Direct Labour Effic less Requirement 4.C Explain. sur variances be tied to the material varia more The For example, if the factory would use iances V be tied to the materia the same amount of sult of purchasing labour in sorting the potatoes. As a result, it would pay workers Requirement 3. Determine the direct labour price and efficiency variances. Be sure to label eac variance as favourable or unfavourable. (Enter the results as positive numbers.) Direct Labou Direct Labou WM Requiremen Explain. an overtime premium labour variances be tied to the material variances The for fewer hours variances be tied to the material varia For example, for their normal hours result of purchasing the rin sorting the potatoes. As a result, it would have factory would pay workers ho

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