Answered step by step
Verified Expert Solution
Question
1 Approved Answer
10.00 points Gladiar Inc. produces premium protective automotive covers. The direct materials and direct labour standards for one car cover are as follows: Standard Quantity
10.00 points Gladiar Inc. produces premium protective automotive covers. The direct materials and direct labour standards for one car cover are as follows: Standard Quantity Standard Price Standard or Hours or Rate Direct materials 5.50 metres of cloth $12 per metre $66.00 0.25 hours Direct labour S13 per hour S 3.25 Variable overhead 0.25 hours S10 per hour 2.50 Budgeted fixed overhead cost is S17,800, and the nomal production volume is 2.385 car covers. Overhead is applied on the basis of direct labour-hours. In September the following activity was recorded 12.100 metres of cloth was purchased at a cost of $12.50 per metre. All of the material was used to produce 2,200 car covers. 595 direct labour-hours were recorded at a total labour cost of $7,735. Actual variable overhead cost was S5,800, and fixed overhead cost was S17,150. Required: 1. Compute the total direct materials cost variance for September. Compute the direct materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance) Direct materials price variance Direct materials quantity variance Total direct material cost variance
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started