The following information is available for ConcertWearShirts:

 

The normal production level is 300 shirts. This production period ConcertWear produced 280 shirts. ConcertWear purchased 900 metres of fabric for $9,720. The variances for the production period are:

Materials Price Variance............................................?

Materials Quantity Variance......................................$ 336 U

Labour Rate Variance...............................................$ 532 U

Labour Efficiency Variance.......................................$ 280 F

VOH Spending Variance............................................$ 98 F

VOH Efficiency Variance..........................................$ 210 F

FOH Budget Variance..............................................$ 110 F

FOH Volume Variance...............................................$ 40 U

Required:

A. How many metres of fabric were used? (Hint: Metres used was not the same as the metres purchased.)

B. What was the materials price variance?

C. What was the actual direct labour rate?

D. What was the actual variable overhead rate?

E. How many machine hours were used?

F. What was the master budget amount for fixed overhead?

Transcribed Image Text:

Standard Quantity 3 metres 2 hours 2 machine hours 2 machine hours Standard Cost $12.00/metre $10.00/hour $3.00/machine hour $1.00/machine hour Total Standard Cost Direct Materials Direct Labour Variable Overhead Fixed Overhead $36.00 $20.00 $6.00 $2.00 $64.00