Answered step by step
Verified Expert Solution
Question
1 Approved Answer
-M:8-19 Calculating materials and labor variances Matthews Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2024 , using 143,000 square feet
-M:8-19 Calculating materials and labor variances Matthews Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2024 , using 143,000 square feet of extruded vinyl purchased at $1.30 per square foot. Production required 400 direct labor hours that cost $16.00 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $1.35 per square foot. The labor standard was 0.028 direct labor hour per fender, at a standard cost of $15.00 per hour. Compute the cost and efficiency variances for direct materials and direct labor. Does the pattern of variances suggest Matthews Fender's managers have been making tradeoffs? Explain
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