Question
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
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 $62,211 for 6,990 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:
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 $65,610 for 7,290 hours of direct labor in the production of 2,100 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:
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 3,500 pairs of shoes that required 12,250 units of material purchased at $8.20 per unit and 9,450 hours of labor at an hourly rate of $8.90 per hour during the month. Actual factory overhead during September was $28,350. 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:
actual Cost Actual Cost Standard Cost Actual Actual X Actual Price X Standard Price Standard Quantity Standard Price Quantity Quantity 6,990 x $ 6,990 X $ 8.40 $ 8.40 58,716 Direct Materials Unfavorable Price Favorable Quantity Direct Materials Variance: Variance: Favorable Total Direct Materials Cost Variance: Actual Cost Standard Cost Standard Actual Hours x Actual Rate Actual Hours Standard Hours Standard Rate Rate $ $ = $ Unfavorable Direct Labor Unfavorable Direct Labor Time Variance: Rate Variance: Unfavorable Total Direct Labor Cost Variance: Standard Price $8.40 per unit $8.50 per hour $2.70 per hour Manufacturing Costs Direct materials Direct labor Factory overhead Standard Cost Per Unit $30.24 Standard Quantity 3.60 units per pair 2.80 hours per pair 2.80 hours per pair 23.80 7.56 Total standard cost per pair $61.60 Sole Purpose Shoe Company Budget Performance Report For the Month Ended September 30 Standard Cost at Actual Volume Cost Variance - (Favorable) Unfavorable Actual Costs Manufacturing Costs Direct materials $ Direct labor Factory overhead Total manufacturing costs th
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started