Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 tents7,000 yards

Direct labor used3,600 hours x $10.75 per hour

(a) Compute all standard cost variances for materials and labor

Materials Price Variance (usage basis) 1750
Materials Price Variance (purchases basis) ????
Materials quantity variance 1050
Labor Rate Variance ????
Labor Efficiency variance 2000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Marketing Audit And Performance A Case Of Parastatals Marketin Audit And Performance

Authors: Bonventure Onyango Odote, Wyckliffe Otieno Robby

1st Edition

365946595X, 978-3659465956

More Books

Students also viewed these Accounting questions