Assignment Requirement: Prepare a brief report to assist the production manager to determine what might have caused the differences between the original budget and the final actual outcomes. Speculations of the causes are sufficient. Restrict your discussion to the changes related to direct materials and direct labour.
The following is the data provided in the assignment:
Actual Sales Volume for the quarter.
The actual volume of direct materials used during the quarter.
The actual cost of the direct materials used during the quarter.
The actual direct labour hours used during the quarter.
The actual cost of direct lavour used during the quarter.
Could someone please help me out with carrying out variance analysis pertaining to direct materials and direct labour as required in this question? Are there any calculations I need to do and templates I need to prepare? Please advise.
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