Question
During May, Joliet Fabrics Corporation manufactured 500 units of special multilayer fabric with the trade and Stylex. The following information from the Stylex production department
During May, Joliet Fabrics Corporation manufactured 500 units of special multilayer fabric with the trade and Stylex. The following information from the Stylex production department also pertains to May.
Direct material purchased: 18,000 yards at $1.38 per yard $24,840
Direct material used: 9,500 yards at $1.38 per yard 13,110
Direct labor: 2,100 hours at $9.15 per hour 19,215
The standard prime cost for one unit of Sylex are as follows:
Direct material: 20 yards at $1.35 per yard $27
Direct labor: 4 hours at $9.00 per hour 36
Total standard prime cost per unit of output $63
Required: Compute the following variances for the month of May, indicating whether each variance is favorable or unfavorable.
- Direct-material price variance
- Direct-material quantity variance
- Direct-material purchase price variance
- Direct-labor rate variance
- Direct-labor efficiency variance
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