Question
Bowie sporting goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows: Direct material of
Bowie sporting goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows:
Direct material of 5.50 yards at $5.50 per yard
Direct labor of 2.00 hours at $20.00 per hour
Overhead applied per sleeping bag at $18.00
In the month of April, the company actually produced 5,100 sleeping bags using 26,800 yards of material at a cost of $5.30 per yard. The labor used was 12,750 hours at an average rate of $16.50 per hour. The actual overhead spending was $96,200.
Determine the labor quantity variance. Enter a favorable variance as negative and unfavorable as positive.
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