Tarptent manufactures camping tents from a lightweight synthetic fabric. Assume the company's two-person tent has a...

 

Transcribed Image Text:

Tarptent manufactures camping tents from a lightweight synthetic fabric. Assume the company's two-person tent has a standard materials cost of $60, consisting of 4 yards of fabric at $15 per yard. The standards call for 1.5 hours of assembly at $20 per hour. The following data were recorded for October, the first month of operations to produce 12,000 tents. Fabric purchased and used in production 48,500.00 yards x $14.50 per yard Direct labor used REQUIRED 18,500.00 hours x $19.50 per hour a. Compute all standard cost variances for materials and labor. Note: Do not use negative signs with your answers. Materials price variance $ 0 x Materials quantity variance $ 0 % Labor rate variance $ 0 x Labor efficiency variance $ b. Give one possible reason for each of the preceding variances. Direct materials price variance: Direct materials quantity variance: Labor rate variance: Labor efficiency variance: = x x x c. Determine the standard variable cost of the 12.000 tents produced, separated into direct materials and labor. Note: Do not use negative signs with your answers. Direct materials $ Direct labor S 0x Total standard variable cost for 12,000 tents S 0 x Tarptent manufactures camping tents from a lightweight synthetic fabric. Assume the company's two-person tent has a standard materials cost of $60, consisting of 4 yards of fabric at $15 per yard. The standards call for 1.5 hours of assembly at $20 per hour. The following data were recorded for October, the first month of operations to produce 12,000 tents. Fabric purchased and used in production 48,500.00 yards x $14.50 per yard Direct labor used REQUIRED 18,500.00 hours x $19.50 per hour a. Compute all standard cost variances for materials and labor. Note: Do not use negative signs with your answers. Materials price variance $ 0 x Materials quantity variance $ 0 % Labor rate variance $ 0 x Labor efficiency variance $ b. Give one possible reason for each of the preceding variances. Direct materials price variance: Direct materials quantity variance: Labor rate variance: Labor efficiency variance: = x x x c. Determine the standard variable cost of the 12.000 tents produced, separated into direct materials and labor. Note: Do not use negative signs with your answers. Direct materials $ Direct labor S 0x Total standard variable cost for 12,000 tents S 0 x

Answer rating: 100% (QA)

a Compute all standard cost variances for materials and labor Materials price variance Standard cost of materials 4 yards x 15 per yard 60 Actual cost ... View the full answer