Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

According to the standards that have been set for the robes, the factory should work 780 direct labor-hours each month and produce 1,950 robes. At

According to the standards that have been set for the robes, the factory should work 780 direct labor-hours each month and produce 1,950 robes.

At standard, each robe should require 2.8 yards of material. All of the materials purchased during the month were used in production.

Standard costs:

Direct Materials: Total $35,490; per unit of product: $18.20

Direct labor: Total $7,020 ; Per unit of product : $ 3.60

Variable Manufacturing Overhead (based on direct labor hours) Total: 2,340; Per Unitof product: $1.20

During Sep,the factory worked only 760 direct labor-hours and produced 2,000 robes. The following actual costs were recorded during the month:

Direct Materials (6,000 yards) Total: $36,000; Per unit of Product: $18.00

Direct LaborTotal: $7,600; Per unit of Product : 3.80

Variable Manufacturing OHTotal: $3,800; per unit of product: $1.90

What would be the Materials Price Variance?

AQxAP=2,000x18.00=36000

AQxSP=2000x18.20=36400

therefore would be $400 Favorable? Please let me know if I am correct. Thank you

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Lawrence A. Tomassini

4th Edition

0072994029, 9780072994025

More Books

Students also viewed these Accounting questions

Question

How easy the information is to remember

Answered: 1 week ago

Question

The personal characteristics of the sender

Answered: 1 week ago