Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Adventure company manufactures camping tents from a lightweight sythinetic fabric. Each tent has a standard materials cost of $42, consisting of 4 yards of fabric

Adventure company manufactures camping tents from a lightweight sythinetic fabric. Each tent has a standard materials cost of $42, consisting of 4 yards of fabric at $10.50 per yard. The standards call for 2 hours of assembly at $20 per hour. The following data were recorded for October, the first month of operations:

fabric purchased 9,000 yards x $10.00 per yard

fabrics used in production of 1,700 tents 7,000 yards

direct labor used 3,600 hours x $21.50 per hour

Required

a. compute all standard cost variances for materials and labor

b. give one possible reason for each of the preceding variances.

c. determine the standard variable cost of the 1,700 tents produced, separated into direct materials and labor.

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_2

Step: 3

blur-text-image_3

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

Cornerstones of Managerial Accounting

Authors: Maryanne Mowen, Don Hanson, Dan Heitger, David McConomy, Bradley Witt, Jeffrey Pittman

3rd Canadian edition

176530886, 176721231, 978-0176721237

More Books

Students also viewed these Accounting questions

Question

6. How can hidden knowledge guide our actions?

Answered: 1 week ago