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. Actual Cost Standard Cost Actual Quantity x Actual Price Actual Quantity Standard Price Standard Quantity Standard Price X = $ Unfavorable Direct Materials Favorable X Direct Materials Price X Variance: Price X Variance: Favorable X Total Direct Materials Cost Variance: Feedback 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 2,200 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 X Actual Rate Actual Hours X Standard Rate Standard Hours X Standard Rate Hours $ X $ Unfavorable Direct Labor Unfavorable Direct Labor Price x Variance: Price X Variance: Unfavorable Total Direct Labor Cost Variance: Feedback Check My Work Performance Report for September. The company produced 2,500 pairs of shoes that required 8,750 units of material purchased at $8.20 per unit and 6,750 hours of labor at an hourly rate of $8.90 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 September Standard Cost Standard Price Standard Quantity Manufacturing Costs Per Unit Direct materials 3.60 units per pair $30.24 $8.40 per unit $8.50 per hour Direct labor 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 Standard Cost at Actual Volume Cost Variance - (Favorable) Unfavorable Manufacturing Costs Actual Costs Direct materials 8.40 X $ 100,450 X $ -5,390 X Direct labor 8.50 X 84,105 X 805 X Factory overhead 2.70 X 28,350 X 1,890 X Total manufacturing costs $ 19.6 X $ 212,905 X $ -2,695 X
