Answered step by step
Verified Expert Solution
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
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