Savannah Textiles, Inc. manufactured 500 units of a special multilayer fabric with the trade name Stylex pj
Question:
Savannah Textiles, Inc. manufactured 500 units of a special multilayer fabric with the trade name Stylex pj ect-Material and during July. The standard prime costs for one unit of Stylex are: OirecthaberVarancas Direct material: 20 yards at $1.35 Per Yard .oe.cecscccccescsssssesessestssesesesesees $27 (LO 3)
Directlabori4 hours at$9/00, perhournt:.. fee aa. eee 36 Total standard prime cost per unit Of OULOUt eeeerr ener ree $63 eXc el 7e mhhe.com/hilton4e The following information from the Stylex production department pertains to July:
Direct material purchased: 18,000 yards at $1.38 per yard...........0. $24,840 Direct material used: 9,500 yards at $1.38 per yard... eee Hey tO)
Direct labor used: 2,100 hours at $9.15 Per NOU oo... eects 19,215 Required Compute the following variances for the month of July, indicating whether each variance is favorable or unfavorable.
a. Direct-material price variance.
b. Direct-material quantity variance.
c. Direct-labor rate variance.
Step by Step Answer:
Cost Management Strategies For Business Decisions
ISBN: 12
4th Edition
Authors: Ronald Hilton, Michael Maher, Frank Selto