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    Material and Labor Variance Computations

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    Material and Labor Variances
    Consider the following data:

    Costs incurred: actual inputs × actual prices incurred Direct Materials $154,000 Direct Labor $77,800

    Actual inputs × expected prices Direct Materials $170,000 Direct Labor $74,000

    Standard inputs allowed for actual outputs achieved × expected prices
    Direct Materials $172,500 Direct Labor $ 71,300

    Compute the price, quantity, and flexible-budget variances for direct materials and direct labor. Use U or F to indicate whether the variances are unfavorable or favorable.

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    https://brainmass.com/business/accounting/material-labor-variance-computations-291528

    Solution Summary

    This solution contains step-by-step calculations in an Excel file to determine the price, quantity, and flexible-budget variances for direct materials and direct labor. It also includes explanations for the conceptual aspects of flexible budget variance and basics of standard costing to further help you with the solution.

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