Question
In December, Sam Antari, president of Antari Inc., received the following information from Denise Sweet, the new controller, in regard to November production of travel
In December, Sam Antari, president of Antari Inc., received the following information from Denise Sweet, the new controller, in regard to November production of travel bags:
November production | 5,760 | bags |
Actual cost of material purchased and used | $17,460 | |
Standard material allowed | 0.5 | square yard per bag |
Material quantity variance | $720 | U |
Standard price per yard of material | $6 | |
Actual hours worked | 11,712 | hours |
Standard labor time per bag | 2 | hours |
Labor rate variance | $1,757 | F |
Standard labor rate per hour | $17 |
Antari asked Sweet to provide the following information: a. Standard quantity of material allowed for November production Answer square yards b. Standard direct labor hours allowed for November production Answer standard hours allowed c. Material price variance Note: Do not use a negative sign with your answer.
Material price variance | Answer | AnswerFavorableUnfavorableNeither favorable or unfavorable |
d. Labor efficiency variance Note: Do not use a negative sign with your answer.
Labor efficiency variance | Answer | AnswerFavorableUnfavorableNeither favorable or unfavorable |
e. Standard prime (direct material and direct labor) cost to produce one travel bag $Answer f. Actual cost to produce one travel bag in November Note: Round your final answer to two decimal places. $Answer
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