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Nolan Mills uses a standard cost system. During May, Nolan manufactured 1 5 , 0 0 0 pillowcases, using 2 8 , 0 0 0
Nolan Mills uses a standard cost system. During May, Nolan manufactured pillowcases, using yards of fabric costing
$ per yard and incurring direct labor costs of $ for hours of direct labor. The standard cost per pillowcase assumes
yards of fabric at $ per yard, and hours of direct labor at $ per hour.
Required:
a Compute both the price variance and quantity variance relating to direct materials used in the manufacture of pillowcases in May.
b Compute both the rate variance and efficiency variance for direct labor costs incurred in manufacturing pillowcases in May.
Note: For all requirements, Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and
enter for no effect ie zero variance Do not round your intermediate values. Round your answers to decimal places.
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