Problem 23-2B Flexible Budgeting and Variance Analysis Yukon Coat Company makes

Question

Problem 23-2B
Flexible Budgeting and Variance Analysis

Yukon Coat Company makes women's and men's coats. Both products require filler and lining material. The following planning information has been made available:

The expected beginning inventory and desired ending inventory were realized.

Required:

1. Prepare the following variance analyses for each coat and total, based on the actual results and production levels at the end of the budget year:

Use the minus sign to enter favorable variances as negative numbers.

2. Why are the standard amounts in part (1) based on the actual production at the end of the year instead of the planned production at the beginning of the year?

The input in the box below will not be graded, but may be reviewed and considered by your instructor.

a. Direct materials price variance: $ SelectFavorableUnfavorableItem 2 Direct materials quantity variance: $ SelectFavorableUnfavorableItem 4 Total direct materials cost variance: $ SelectFavorableUnfavorableItem 6 b. Direct labor rate variance: $ SelectFavorableUnfavorableItem 8 Direct labor time variance: $ SelectFavorableUnfavorableItem 10 Total direct labor cost variance: $ SelectFavorableUnfavorableItem 12

Explanation / Answer

1. Prepare the following variance analyses for each coat and total, based on the actual results and production levels at the end of the budget year:

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