Metlock Clothiers is a small company that manufactures tall$-$men's suits. The company has used a standard cost accounting system. In

May $2020,10,000$ suits were produced. The following standard and actual cost data applied to the month of May when normal

capacity was $14,000$ direct labor hours. All materials purchased were used.

Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $$51,800,$ and budgeted

variable overhead was $$35,000.$

$($a$)$

Compute the total, price, and quantity variances for $(1)$ materials and $(2)$ labor. $($Round per unit values to $2$ decimal places, e$.$g$.52\mathrm{.}75$ and

final answers to $0$ decimal places, e$.$g$.52.)$

$(1)$Metlock Clothiers is a small company that manufactures tall$-$mer's suits. The company has used a standard cost accounting system. In May $2020,10\mathrm{.}000$ sults were produced. The following standard and actual cu data applied to the month of May when normal capacity was $14,000$ direct labor hours. All materials purchased were used

Cost Element

Standard $($per unit$)$

Direct materials

$10$ yards at $$4\mathrm{.}40$ per yard

Direct labor

$1\mathrm{.}20$ hours at $$13\mathrm{.}00$ per hour

Overhead

$1\mathrm{.}20$ hours at $$6\mathrm{.}20$ per hour $($fixed $$3\mathrm{.}70$; variable

$$2\mathrm{.}500$

Actual

$$428\mathrm{.}825$ for $100\mathrm{.}900$ yards $($$$4\mathrm{.}25$ per yand$)$

$$168,840$ for $12\mathrm{.}600$ hours $($$$13\mathrm{.}40$ per hour$)$

$$48,600$ fixed overhead $$37,500$ variable overhead

Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $$51,800,$ and budgeted variable overhead was $$35\mathrm{.}000$

$($a$)$

Compute the total price, and quantity variances for $(1)$ materials and $(2)$ labor $($Round per unit values to $2$ decimal places, eg$.52\mathrm{.}75$ and final answers to O decimal places, eg $52)$

$(1)$ Total materials variance

Materials price variance

S

Favorable