Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Grouper Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2017, 10,600 suits were

image text in transcribed

Grouper Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2017, 10,600 suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was 13,000 direct labor hours. All materials purchased were used. Cost Element Direct materials Direct labor Overhead Standard (per unit) 6 yards at $4.00 per yard 1.10 hours at $14.00 per hour 1.10 hours at $6.20 per hour (fixed $3.50; variable $2.70) Actual $243,960 for 64,200 yards ($3.80 per yard) $182,120 for 12,560 hours ($14.50 per hour) $49,100 fixed overhead $37,500 variable overhead Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $45,500, and budgeted variable overhead was $35,100. Compute the total, price, and quantity variances for (1) materials and (2) labor. (Round answers to 0 decimal places, e.g. 125.) (1) Total materials variance $ Materials price variance Materials quantity variance (2) Total labor variance $ Labor price variance $ Labor quantity variance $ LINK TO TEXT LINK TO TEXT LINK TO TEXT Compute the total overhead variance. Total overhead variance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Financial And Managerial Accounting For School Administrators Tools For School

Authors: Ronald E. Everett, Donald R. Johnson, Bernard W. Madden

1st Edition

1578865816, 978-1578865819

More Books

Students also viewed these Accounting questions

Question

What are the purposes of collection messages? (Objective 5)

Answered: 1 week ago