Answered step by step
Verified Expert Solution
Question
1 Approved Answer
P lease help! Thank you! Zee Corporation has developed the following cost standards for the production of its leather backpacks: 12. Leather (1.3 yards x
Please help! Thank you!
Zee Corporation has developed the following cost standards for the production of its leather backpacks: 12. Leather (1.3 yards x $32 per yard) Direct labor (1.6 hours $17.00 per hour) Variable overhead (1.6 hours $21.60 per hour) Standard Cost Per Backpack $41.60 $27.20 $34.56 24 points Variable overhead at Zee is applied on the basis of direct labor hours. The actual results for last month were as follows: (8 02:37:43 Number of backpacks produced Direct labor hours incurred Yards of leather purchased Yards of leather used in production Cost of leather purchased Direct labor cost Variable overhead cost 9,000 13,740 13,060 12,770 $400,942 $220,527 $300,906 The direct materials purchases variance is computed when the materials are purchased. Required: Compute the following variances for Zee. a. Materials price variance. Materials price variance 12 b. Materials quantity variance. Materials quantity variance points (8 02:37:05 C. Labor efficiency variance Labor efficiency variance d. Variable overhead rate variance. Variable overhead rate varianceStep 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