Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Direct Materials and Direct Labor Variance Analysis Lenni Clothing Co . manufactures clothing in a small manufacturing facility. Manufacturing has 2 5 employees. Each employee

Direct Materials and Direct Labor Variance Analysis
Lenni Clothing Co. manufactures clothing in a small manufacturing facility. Manufacturing has 25 employees. Each employee presently provides 40 hours of productive labor per week. Information about a production week is as follows:
Line Item Description Value
Standard number of yds. of fabric per unit 5.0 yds.
Standard price per yd. of fabric $5.00
Standard wage per hr. $12.00
Standard labor time per unit 12 min.
Actual price per yd. of fabric $5.10
Actual yds. of fabric used during the week 26,200 yds.
Number of units produced during the week 5,220
Actual wage per hr. $11.80
Actual hrs. for the week 1,000 hrs.
Required:
a. Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places.
Line Item Description Cost per Unit
Direct materials standard cost per unit $fill in the blank 1
Direct labor standard cost per unit $fill in the blank 2
Total standard cost per unit $fill in the blank 3
b. Determine the price variance, quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Line Item Description Amount Variance
Price variance $fill in the blank 4
Quantity variance $fill in the blank 6
Total direct materials cost variance $fill in the blank 8
c. Determine the rate variance, time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Line Item Description Amount Variance
Rate variance $fill in the blank 10
Time variance $fill in the blank 12
Total direct labor cost variance $fill in the blank 14

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

Principles Of Islamic Accounting

Authors: Nabil Baydoun, Maliah Sulaiman, Roger J. Willett, Shahul Ibrahim

1st Edition

1119023297, 9781119023296

More Books

Students also viewed these Accounting questions