Southern Stitches is a local casual clothing shop that makes a variety of t-shirt styles. Below...
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Southern Stitches is a local casual clothing shop that makes a variety of t-shirt styles. Below is some actual vs. budget information for Southern's t-shirts for the month of May. Assume no beginning/ending inventories for simplicity. The cost-allocation base for both variable and fixed overhead is direct labor-hours. Data for the Month of May Static Actual Budget # T-shirts made and sold 5,603 5.350 Selling price per t-shirt $18 $17 Yards of fabric per t-shirt 1.13 1.0 Cost per yard of fabric $2.00 $2.66 Time in hours to sew one t-shirt 0.25 0.2 Cost of direct labor (per hour) $14 $15 Variable overhead costs $3.600 $3,000 (utilities, sewing machine maintenance, etc.) 0.25 0.2 Time in hours to sew one t-shirt $14 $15 Cost of direct labor (per hour) $3.600 $3,000 Variable overhead costs (utilities, sewing machine maintenance, etc.) Fixed overhead costs $4,700 $4,800 (store rent, insurance, etc.) What is the flexible budget variance for direct materials? $2,241.20 U $1,842.20 U O $2.241.20 F O $1,842.20 F Southern Stitches is a local casual clothing shop that makes a variety of t-shirt styles. Below is some actual vs. budget information for Southern's t-shirts for the month of May. Assume no beginning/ending inventories for simplicity. The cost-allocation base for both variable and fixed overhead is direct labor-hours. Data for the Month of May Static Actual Budget # T-shirts made and sold 5,603 5.350 Selling price per t-shirt $18 $17 Yards of fabric per t-shirt 1.13 1.0 Cost per yard of fabric $2.00 $2.66 Time in hours to sew one t-shirt 0.25 0.2 Cost of direct labor (per hour) $14 $15 Variable overhead costs $3.600 $3,000 (utilities, sewing machine maintenance, etc.) 0.25 0.2 Time in hours to sew one t-shirt $14 $15 Cost of direct labor (per hour) $3.600 $3,000 Variable overhead costs (utilities, sewing machine maintenance, etc.) Fixed overhead costs $4,700 $4,800 (store rent, insurance, etc.) What is the flexible budget variance for direct materials? $2,241.20 U $1,842.20 U O $2.241.20 F O $1,842.20 F
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Ans c 224120 F Working Note Actual units made sold Yards ... View the full answer
Related Book For
Intermediate Microeconomics and Its Application
ISBN: 978-0324599107
11th edition
Authors: walter nicholson, christopher snyder
Posted Date:
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