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I need help figuring out how to solve the problem. The next uploads are the correct answers to this multiple-part problem. I had tried to
I need help figuring out how to solve the problem. The next uploads are the correct answers to this multiple-part problem. I had tried to figure out how to solve this on my own but I have had no luck.
PR 22-1B Direct Materials & Direct Labor Variance Lenni Clothing Co. manufactures clothing in a small manufacturing facility. Manufacturing has 25 employees. Each employee presently provides 40 hours of productive labor per week. Information about a production week is as follows: Standard wage per hr. $12.00 Standard labor time per unit 12 min. Standard number of yds of fabric per unit 5.0 yds. Standard price per yd. of fabric $5.00 Actual price per yd. of fabric $5.10 Actual yds of fabric used during the week 26,200 yds. Number of units produced during the week 5,220 Actual wage per hr $11.80 Actual hrs.for the week 1,000 hrs. Determine (a) the standard cost per unit for direct materials and direct labor; (b) the price variance, quantity variance, and total direct materials cost variance; and (c) the rate variance, time variance, and total direct labor cost variance. PR 22-1B Direct Materials & Direct Labor Variance DM Units produced 3 5,220 Standard Input Standard Price 1 26200 5.10 133,620 5 yard $ 5.00 2 26200 $ 5.00 $ 131,000 Input Price $ $ 26,100 $ 5.00 $ 130,500 $ $ 2,620 Unfavorable (1-2) $ 500 Unfavorable (2-3) $ 3,120 Unfavorable (1-3) PR 22-1B Direct Materials & Direct Labor Variance DL Units produced 5,220 Standard Input Standard Price 1 1000 11.80 11,800 0.2 hour 12.00 2 1000 12.00 12,000 Input Price $ $ $ $ 3 1,044 $ 12.00 $ 12,528 $ (200) favorable (1-2) $ (528) favorable (2-3) $ (728) favorable (1-3)
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