Answered step by step
Verified Expert Solution
Question
1 Approved Answer
During May, Joliet Fabrics Corporation manufactured 570 units of a special multilayer fabric with the trade name Stylex. The following information from the Stylex production
During May, Joliet Fabrics Corporation manufactured 570 units of a special multilayer fabric with the trade name Stylex. The following information from the Stylex production department also pertains to May. Direct material purchased: 18,700 yards at $1.45 per yard Direct material used: 10,200 yards at $1.45 per yard Direct labor: 2,800 hours at $9.22 per hour $ 27,115 14,790 25,816 The standard prime costs for one unit of Stylex are as follows: Direct material: 20 yards at $1.42 per yard Direct labor: 4 hours at $6.00 per hour Total standard prime cost per unit of output $28.40 24.00 $52.40 Required: Compute the following variances for the month of May. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance). 1. Direct-material price variance 2. Direct-material quantity variance 3. Direct-material purchase price variance 4. Direct-labor rate variance 5. Direct-labor efficiency variance
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