Direct Materials

Under normal conditions, Sarah spends $8.40 per unit of materials, and it will take 3.60 units of material per pair of shoes. During July, Sole Purpose Shoe Company incurred actual direct materials costs of $61,321 for 6,890 units of direct materials in the production of 2,150 pairs of shoes.

Complete the following table, showing the direct materials variance relationships for July for Sole Purpose Shoe Company. If required, round your answers to two decimal places. When entering variances, use a negative number for a favorable cost variance, and a positive number for an unfavorable cost variance.

Actual Cost								Standard Cost
Actual Quantity	X	Actual Price		Actual Quantity	X	Standard Price		Standard Quantity	X	Standard Price
fill in the blank e79b1a059078f9c_1 Incorrect	X	$fill in the blank e79b1a059078f9c_2		fill in the blank e79b1a059078f9c_3	X	$fill in the blank e79b1a059078f9c_4		fill in the blank e79b1a059078f9c_5	X	$fill in the blank e79b1a059078f9c_6
	= $fill in the blank e79b1a059078f9c_7				= $fill in the blank e79b1a059078f9c_8				= $fill in the blank e79b1a059078f9c_9
			UnfavorableFavorable Direct Materials CostPriceQuantityRateTime Variance:				UnfavorableFavorable Direct Materials CostPriceQuantityRateTime Variance:
			$fill in the blank e79b1a059078f9c_14				$fill in the blank e79b1a059078f9c_15

Direct Labor

Under normal conditions, Sarah pays her employees $8.50 per hour, and it will take 2.80 hours of labor per pair of shoes. During August, Sole Purpose Shoe Company incurred actual direct labor costs of $65,880 for 7,320 hours of direct labor in the production of 2,300 pairs of shoes.

Complete the following table, showing the direct labor variance relationships for August for Sole Purpose Shoe Company. If required, round your answers to two decimal places. When entering variances, use a negative number for a favorable variance, and a positive number for an unfavorable variance.

Actual Cost								Standard Cost
Actual Hours	X	Actual Rate		Actual Hours	X	Standard Rate		Standard Hours	X	Standard Rate
fill in the blank 2bfba0f64043073_1	X	$fill in the blank 2bfba0f64043073_2		fill in the blank 2bfba0f64043073_3	X	$fill in the blank 2bfba0f64043073_4		fill in the blank 2bfba0f64043073_5	X	$fill in the blank 2bfba0f64043073_6
	= $fill in the blank 2bfba0f64043073_7				= $fill in the blank 2bfba0f64043073_8				= $fill in the blank 2bfba0f64043073_9
			UnfavorableFavorable Direct Labor CostPriceQuantityRateTime Variance:				UnfavorableFavorable Direct Labor CostPriceQuantityRateTime Variance:
			$fill in the blank 2bfba0f64043073_14				$fill in the blank 2bfba0f64043073_15
					UnfavorableFavorable Total Direct Labor CostPriceQuantityRateTime Variance:
					$fill in the blank 2bfba0f64043073_18

Feedback Area

Feedback

Review Exhibit 7 in the text.

Question Content Area

Budget Performance Report

Sarah has learned a lot from you over the past two months, and has compiled the following data for Sole Purpose Shoe Company for September using the techniques you taught her. She would like your help in preparing a Budget Performance Report for September. The company produced 3,000 pairs of shoes that required 10,500 units of material purchased at $8.20 per unit and 8,100 hours of labor at an hourly rate of $8.90 per hour during the month. Actual factory overhead during September was $24,300. When entering variances, use a negative number for a favorable cost variance, and a positive number for an unfavorable cost variance.

Use the data in the following table to prepare the Budget Performance Report for Sole Purpose Shoe Company for September.

Manufacturing Costs	Standard Price	Standard Quantity	Standard Cost Per Unit
Direct materials	$8.40 per unit	3.60 units per pair	$30.24
Direct labor	$8.50 per hour	2.80 hours per pair	23.80
Factory overhead	$2.70 per hour	2.80 hours per pair	7.56
Total standard cost per pair			$61.60

Sole Purpose Shoe Company Budget Performance Report For the Month Ended September 30
Manufacturing Costs	Actual Costs	Standard Cost at Actual Volume	Cost Variance - (Favorable) Unfavorable
Direct materials	$fill in the blank e889bef8c045f88_1	$fill in the blank e889bef8c045f88_2	$fill in the blank e889bef8c045f88_3
Direct labor	fill in the blank e889bef8c045f88_4	fill in the blank e889bef8c045f88_5	fill in the blank e889bef8c045f88_6
Factory overhead	fill in the blank e889bef8c045f88_7	fill in the blank e889bef8c045f88_8	fill in the blank e889bef8c045f88_9
Total manufacturing costs	$fill in the blank e889bef8c045f88_10	$fill in the blank e889bef8c045f88_11	$fill in the blank e889bef8c045f88_12