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 6,690 units of direct materials in the production of 2,175 pairs of shoes Complete the following table, showing the direct materiais variance relationships for July for Sole Purpose Shoe Company. It 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 Actual Actual Actual Standard Quantity Price Quantity Price 6,890 $ 8.9 6,890 8.4 61,321 Unfavorable Direct Materials Favorable Price Variance: Quanti $ 3,445 Favorable Total Direct Materials Cost Variance -5,207 x Feedback Check My Work Review Exhibit 6 in the text. Direct Labor 3.60 units of material per pair of shoes. During July, Sole Purpose Shoe Company incurred roduction of 2,175 pairs of shoes. Tor July for Sole Purpose Shoe Company. If required, round your answers to two decimal places. d a positive number for an unfavorable cost variance. Standard Cost * Standard Actual Quantity 6,890 Standard Price Standard Quantity 7,920 X Price 8.4 $ 8.4 - $ 57,876 = $ 66,528 x et Materials ce: Favorable Direct Materials Quantity Variance: $ -8,652 x Favorable Total Direct Materials Cost Variance: $ 5,207 X Direct Labor Under normal conditions, Sarah pays her employees $8.50 per hour, and it will take 2.0 hours of labor per pair of shoes. During August, Sole Purpose Shoe Company incurred actual direct labor costs of $65,340 for 7,260 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 Sale 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 Actual Hours Actual Rate Actual Hours Standard Rate 7,260 8.9 X 6,890X 8.5 Unfavorable Price X Direct Labor Variance: Quantity 3 Total Direct Labor Variance: Feedback Check My Work Review Exhibit 7 in the text. hours of labor per pair or shoes. During August, Sole Purpose Shoe Company incurred 100 pairs of shoes. or Sole Purpose Shoe Company. If required, round your answers to two decimal places. number for an unfavorable variance. Standard Cost Standard Actual Hours Standard Rate Standard Rate Hours 6,896 x 8.5 6,440 8.5 Direct Labor Variance: Quantity X Total Direct Labor Variance: Budget Performance Report Sarah has learned a lot from you over the past two months, and has compiled the following data for Sale 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 2,500 pairs of shoes that required 8,750 units of material purchased at 58.20 per unit and 6,750 hours of labor at an hourly rate of $0.90 per hour during the month. Actual factory overhead during September was $20,250. 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 Standard Price Standard Cost Per Unit Manufacturing Costs Standard Quantity 3.60 units per pair 2.80 hours per pair Direct materials $8.40 per unit $8.50 per hour $30.24 23.80 Direct labor 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 Standard Cost at Actual Volume Cost Variance - (Favorable) Unfavorable Manufacturing Costs Actual Costs Direct materials Direct labor Factory overhead Total manufacturing costs
