Please find the attached file which contains the question

Please find the attached file which contains the question

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Scenario:
MadHatter manufactures baseball caps.
The Accounting Faculty of PSU order 150 caps for the
Accounting 211 students with
ALOE
imprinted on them.
MadHatter has the following set of
standards for the manufacture of baseball caps.
DM:
½ yard of fabric per cap
$4.00 per yard of fabric
DL:
1 labor hour per cap
$11.00 per labor hour
After the caps were shipped, MadHatter analyzed the actual data from production and discovered
the following results.
DM:
¾ yard of fabric per cap
$2.85 per yard of fabric
DL:
1.4 labor hours per cap
$9.
.50 per labor hour
Assignment:
1.
Determine the DM and DL budgets.
2.
Calculate the Quantity and Price Variances for each budget and indicate whether each is
favorable or unfavorable.
3.
Provide explanations for the variances.

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