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Outdoor Company manufactures camping tents from a lightweight synthetic fabric. Each tent has a standard materials cost of $21, consisting of 4 yards of fabric
Outdoor Company manufactures camping tents from a lightweight synthetic fabric. Each tent has a standard materials cost of $21, consisting of 4 yards of fabric at $5.25 per yard. The standards call for 2 hours of assembly at $10 per hour. The following data were recorded for October, the first month of operations:
Fabric purchased | 9,000 yards x $ 5.00 per yard |
Fabric used in production of 1,700 tents | 7,000 yards |
Direct labor used | 3,600 hours x $10.75 per hour |
(a) Compute all standard cost variances for materials and labor.
Materials price variance (usage basis) | $Answer AnswerFU
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Materials price variance (purchase basis) | $Answer Answer
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Materials quantity variance | $Answer Answer
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Labor rate variance | $Answer Answer
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Labor efficiency variance | $Answer Answer
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