Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

During May, Joliet Fabrics Corporation manufactured 690 units of a special multilayer fabric with the trade name Stylex. The following information from the Stylex production

During May, Joliet Fabrics Corporation manufactured 690 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: 19,900 yards at $1.57 per yard $ 31,243
Direct material used: 11,400 yards at $1.57 per yard 17,898
Direct labor: 4,000 hours at $9.34 per hour 37,360

The standard prime costs for one unit of Stylex are as follows:

Direct material: 20 yards at $1.54 per yard $ 30.80
Direct labor: 5 hours at $8.00 per hour 40.00
Total standard prime cost per unit of output $ 70.80

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 "0" for no effect (i.e., zero variance).

image text in transcribed

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

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions