should have used pounds of potatoes and hours of direct labor.
Read the requirements.
favorable F or unfavorable U
The direct materials price variance is
The direct materials quantity variance is
Requirement Think of a plausible explanation for the variances found in Requirement
One plausible explanation is that Garver bought
price, which resulted in the
grad price variance. However, because the potatoes were
As a result, the manufacturing facility
potatoes than standards allow. This accounts for the
efficiency variance.
favorable F or unfavorable U
The direct labor rate variance is
The direct labor efficiency variance is
Requirement Could the explanation for the labor variances be tied to the material variances? Explain.
The
labor rate and efficiency variances
be tied to the material variances. For example, if the material variances were the result of purchasing
then the factory would use
labor
in sorting the potatoes. As a result, they would have had to pay workers
