Question
I need an explanation and help with the answers Rudd Clothiers is a small company that manufactures tall-men's suits. The company has used a standard
I need an explanation and help with the answers
Rudd Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2020,10,500suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was14,500direct labor hours. All materials purchased were used.
Cost Element
Standard (per unit)
Actual
Direct materials 9yards at $4.50per yard$419,320for95,300yards ($4.40per yard)Direct labor 1.10hours at $14.00per hour$173,745for12,150hours ($14.30per hour) Overhead1.10hours at $6.30per hour (fixed $3.70; variable $2.60)$49,100fixed overhead $37,500variable overhead
Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $53,650, and budgeted variable overhead was $37,700.
(a)
Compute the total, price, and quantity variances for (1) materials and (2) labor.(Round per unit values to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 52.)
(1)Total materials variance$
Unfavorable
Favorable
Neither favorable nor unfavorable
Materials price variance$
Favorable
Neither favorable nor unfavorable
Unfavorable
Materials quantity variance$
Neither favorable nor unfavorable
Favorable
Unfavorable
(2)Total labor variance$
Favorable
Neither favorable nor unfavorable
Unfavorable
Labor price variance$
Favorable
Unfavorable
Neither favorable nor unfavorable
Labor quantity variance$
Unfavorable
Neither favorable nor unfavorable
Favorable
(b)
Compute the total overhead variance.
Total overhead variance$
Favorable
Neither favorable nor unfavorable
Unfavorable
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