European Styles, Inc., manufactures women's blouses of one quality, which are produced in lots to fill each special order. Its customers are department stores in various cities. European Styles sews the particular stores' labels on the blouses. During November, the company worked on three orders, for which the month's job-cost records disclose the following data. Lot Number 22 23 24 Boxes in Lot 1,000 1,700 1,200 Material Used (yards) 24,100 40,440 28,825 Hours Worked 2,980 5,130 2,890 The following additional information is available: 1. The firm purchased 95,000 yards of material during November at a cost of $106,400. 2. Direct labor during November amounted to $165,000. According to payroll records, production employees were paid $15.00 per hour. 3. There was no work in process on November 1. During November, lots 22 and 23 were completed. All material was issued for lot 24, which was 80 percent completed as to direct labor. 4. The standard costs for a box of six blouses are as follows: Direct material Direct labor Production overhead Standard cost per box 24 yards at 3 hours at 3 hours at $ 1.10 per yard $14.70 per hr. $12.00 per hr. $26.40 44.10 36.00 $106.50 2. For each lot produced during November, complete the following schedules: a. Direct-material purchase price variance. b. Direct-material quantity variance. c. Direct-labor efficiency variance. d. Direct-labor rate variance. Complete this question by entering your answers in the tabs below. Req 2A Req 2B Reg 20 Req 2D For each lot produced in November, complete the following schedule for the direct-material purchase price variance. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance). ) EUROPEAN STYLES, INC. Direct-Material Purchase Price Variance For Actual cost of materials purchased Standard cost of materials purchased Direct-material purchase price variance Reg 2A Reg 2B Reg 2C Reg 2D For each lot produced in November, complete the following schedule for the direct-material quantity variance. (Indicate the effect of each variance by selecting "Favorable" or "Un and enter "0" for no effect (i.e., zero variance). Round "Standard price" to 2 decimal places.) EUROPEAN STYLES, INC. Direct-Material Quantity Variances For November Lot No. 22 23 24 Total 1,000 1,700 1,200 Direct-material quantity variance: Standard yards: Boxes in lot Standard yards per box Total standard quantity Actual yards used Variance in yards Standard price Direct-material quantity variance Reg 2A Req 2B Reg 20 Req 2D For each lot produced in November, complete the following schedule for the direct-labor efficiency variance. (Indicate the effect of each variance by selecting "Favorable" or "Unfa enter "0" for no effect (i.e., zero variance). Round "Standard rate" to 2 decimal places.) EUROPEAN STYLES, INC. Direct-Labor Efficiency Variances For November Lot No. 22 23 24 Total Direct-labor efficiency variance: Standard hours: Boxes in lot 1,000 1,700 1,200 Standard hours per box Total % % % Percentage of completion Total standard hours Actual hours worked Variance in hours Standard rate Direct-labor efficiency variance Reg 2A Reg 2B Reg 20 Reg 2D For each lot produced in November, complete the following schedule for the direct-labor rate variance. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorab "O" for no effect (i.e., zero variance). Round "Rate paid in excess of standard" to 2 decimal places.) EUROPEAN STYLES, INC. Direct-Labor Rate Variances For November Lot No. 22 23 24 Total Direct-labor rate variance Actual hours worked Rate paid in excess of standard Variance
