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Deporte Company produces single colored T-shirts. Materials for the shirts are dyed. in large vats. After dying the materials for a given color, the vats

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Deporte Company produces single colored T-shirts. Materials for the shirts are dyed. in large vats. After dying the materials for a given color, the vats must be cleaned and prepared for the next batch of materials to be colored. The following standards for changeover for a given batch have been established:

Direct Materials (2.4lbs @ $0.95) $2.28

Direct Labor (0.75 hr. @ $7.40) 5.55

Standard Prime Cost $7.83

During the year, 79,500 pounds of material were purchased and used for the changeover activity. There were 30,000 batches produced, with the following actual prime costs:

Direct Materials $68,040

Direct Labor $194,428 (for 22,450 hrs. )

Required:

Compute the materials and labor variances associated with the changeover activity, labeling each variance as favorable or unfavorable.

Material Variances

Price Variance $_______

Usage Variance $________

Labor Variances

Rate Variance $________

Efficiency Variance $________

Mand Labor Vannes Deporte Company products singlorer. Men for the streets After yg the maten fan coi thie vata mine dans dered for the rest batterie cored. The following standards for her for a given both have seen and De 24 10:05) 12:20 Det bor (0.75 7.40) S. Standard Drive.co $7.83 During the year, 79,5 pounds of material were purchase and for the changeover. There were 30,000 batches produced, with the following time.co Direct means 168,040 Direct latior S18 (or 22,450 Required Compute the materials and labor variancescated with the changeover activity, bing each warunce as favorable or unfavorable Material Variantes Price variance Usage variance Lato Variances DI DO Rate Idency walance Deporte Company produces scored that for det her the materia forage color the dead and pred for them to be colored. The winners for change for at have been Drec 24 005) Director (540) 5.55 Standart During the year 79.500 pound med det for a change there were 30.000 produced with the actual Direct material 0.040 Director 5194422,450) Compute the more the store Material Variantes Powe the varios Labor Variances

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