Question
A CFO creates the following standards for cotton and nylon suits: Nylon Jogging Suits Cotton Jogging Suits Std.qty/suit Std.price/input Std.qty/suit Std.price/input Direct Materials 2.5 yds/suit
A CFO creates the following standards for cotton and nylon suits:
| Nylon Jogging Suits | Cotton Jogging Suits | |||
| Std.qty/suit | Std.price/input | Std.qty/suit | Std.price/input | |
| Direct Materials | 2.5 yds/suit | $20/yd | 4 yds/suit | $15/yd |
| Direct Labor | 5 dlh/suit | $10/dlh | 4 dlh/suit | $15/dlh |
| VOH:utilities/grease/janitor | 5 mh/suit | $10/mh | 8 mh/suit | $10/mh |
The only NON-ZERO variance caused during the year was when the company purchased 1,000 yards of nylon for $12/yard.
Calculate the ACTUAL variable cost of a nylon and cotton jogging suit for the year
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Management Accounting For Decision Makers
Authors: Peter Atrill
9th Edition
9781292204574
