The company where Michael works produces skateboards locally but sells them globally for $ each. Michael is one of the
production managers in a meeting to discuss preliminary results from the year just ended. Here is the information they had in front of
them:
Actual results:
Quantity of wood purchased, feet; quantity of wood used, feet.
Quantity of wheels purchased, wheels; quantity of wheels used, wheels.
Actual cost of the wood, $ per foot.
Actual cost of the wheels, $ per wheel.
Quantity of DL hours used, hours; actual cost of DL hours, $ per hour.
Actual units produced, skateboards.
a
Complete a variance analysis for DM both wood and wheels and DL determining the price and efficiency variances for each; be
sure to specify the amount and sign of each variance.
Price Variance
DM
Wood
DM
Wheels
Efficiency Varianc
$
$
$
