Question
Direct-Material Variances Nakhon Custom Shirt Company uses a special fabric in the production of dress shirts. During August, Nakhon Custom Shirt purchased and used 4,100
Direct-Material Variances
Nakhon Custom Shirt Company uses a special fabric in the production of dress shirts. During August, Nakhon Custom Shirt purchased and used 4,100 square yards in the production of 3,700 shirts at a total cost of B2,812,600. (B stands for the Thai baht. There are roughly 30 bahts to a U.S. dollar.) The standard allows one yard at B680 per yard for each shirt.
Calculate the material price variance and the material quantity variance.
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Introduction to Management Accounting
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
16th edition
978-0133058819, 9780133059748, 133058816, 133058786, 013305974X , 978-0133058789
