Homework: chapter 7 Score: 0 of 30 pts E7-23 (similar to) SallyMay, Inc. designs and manufactures T-shits. It sells its T-shits to brand-name clothes retailers in lots of one dazen Sally May's May 2013 static budget and actual Save 6016(I complete) HW Score: 12.89%, 18.7 of 145 pts Question Help * results for direct inputs are as follows (Click the icon to view the data ) SalyMay has a policy ofanalyzing allrpu t va ances when they add up to more ran 10% ofthe total cost of mater als and labor n te flex ble budget and this is true n May 2013. The production manager discusses the sources of the vanances A new type of material was purchased in May This led to faster cutting and sewing, but the workers used more material than usual as they learned to work with it For now, the standards are fine" 1 Requirements ariances in May 2013. What is the total Bexible-budget variance for ance of the total cost of direct matenials and direct manufacturing 1. Calculate the direct materials and direct manufacturing labor pice and efficiency vanances in May 2013 What is the total flexible-budget variance for both inputs (direct materials and direct manufactunng labor) combined? What percentage is this variance of the total cost of direct materials and direct manufacturing labor in the Blexible budget? les in May 2013 Complete the actual results, price variance, and prable or unfavorable. (Round all answers to the nearest cent ) 2. Sally Smith, the CEO, is concerned about the input variances But she likes the quality and feel of the new material and agrees to use it for one more year In May 2014 SallyMay again produces 560 lots of T-shirts Relative to May 2013, 2% less drect materal is used, direct material prices down 5% and 2% less direct manufactm labor is used Labor price has remained the same as in May 2013. Calculate the direct materials and direct manufacturing labor price and efficiency variances in May 2014 What is the total flexible-budget variance for both inputs (direct materials and direct manufacturng labor) combined? What percentage is this variance of the total cost of direct materials and direct manufacturing labor in the fexible budget? Comment on the May 2014 results would you continue the geenmentatusnah. new matenial? 3. Data Table Pint Done Static Budget Number of T-shirt lots (1 lot 1 dozen) Per Lot of T shirts: Direct materials Drect manufacturing labor Actual Results Number of T-shirt lots sold 500 13meters at SI 60 per meter 20 80 1.9 hours at S7.90 per hour $15 01 550 Choose from any list or enter any number in the input fields Total Direct Inputs: Direct materials Direct manufacturing labor 7,810 meters at $1.85 per meter $14,448 50 990 hours at S8 00 per hour = $7 920 00 remaining