Karina will make 4,000 jackets with standard quantity of leather per jacket of 120.03 square inches...

 

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Karina will make 4,000 jackets with standard quantity of leather per jacket of 120.03 square inches of material @$0.25/square inch. The actual quantity of leather per jacket for those 4,000 jackets produced was 122.53 square inches of material @0.24/square inch. The standard labor to produce each jacket is one hour for each jacket with a cost of $16.50/hour. The actual labor used to produce each jacket was 1.06 hours at $16/hour. Required: 1. Using performance standards for the labor utilized in the manufacture of jackets, calculate the direct labor variances, including rate and efficiency variances. 2. Use conditional formatting to identify favorable and unfavorable variances. Karina will make 4,000 jackets with standard quantity of leather per jacket of 120.03 square inches of material @$0.25/square inch. The actual quantity of leather per jacket for those 4,000 jackets produced was 122.53 square inches of material @0.24/square inch. The standard labor to produce each jacket is one hour for each jacket with a cost of $16.50/hour. The actual labor used to produce each jacket was 1.06 hours at $16/hour. Required: 1. Using performance standards for the labor utilized in the manufacture of jackets, calculate the direct labor variances, including rate and efficiency variances. 2. Use conditional formatting to identify favorable and unfavorable variances.

Answer rating: 100% (QA)

ANSWER Lets calculate the direct labor variances first Rate Variance Rate Variance Actual Rate Stand... View the full answer