Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cool Leather Products (CLP) produces leather clothing and accessories. The company has developed a static budget for its leather purses manufacturing department for the

image

Cool Leather Products (CLP) produces leather clothing and accessories. The company has developed a static budget for its leather purses manufacturing department for the first quarter. During the quarter the actual activity was 22,000 direct labour hours. Results at the end of the first quarter are shown below. Static Budget Actual Direct labour hours 20,000 22,000 Direct materials $80,000 $91,000 Direct labour 160,000 174,000 Rent 48,000 50,000 Share of fixed manufacturing overhead 12,000 11,000 Total Costs $300,000 $326,000 Required: a) Calculate relevant variances to assess cost control for the manufacturing department. b) Provide a reasonable explanation for the variances with respect to direct materials nd direct labour.

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

Introduction to Management Science

Authors: Bernard W. Taylor

11th Edition

132751917, 978-0132751919

More Books

Students also viewed these Accounting questions