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Perfect Pet Collar Company makes custom leather pet collars. The company expects each collar to require 2.50 feet of leather and predicts leather will cost
Perfect Pet Collar Company makes custom leather pet collars. The company expects each collar to require 2.50 feet of leather and predicts leather will cost $4.50 per foot. Suppose Perfect Pet made 100 collars during February. For these 100 collars, the company actually averaged 2.65 feet of leather per collar and paid $4.10 per foot.
Required: 1. Calculate the standard direct materials cost per unit. (Round your answer to 2 decimal places.) per Collar Standard Direct Materials 2. Without performing any calculations, determine whether the direct materials price variance will be favorable or unfavorable. Direct Material Price Variance 3. Without pertorming any calculations, detemine whether the direct materials quantity variance will be favorable or untavorable the direct matenials ect 6. Calculate the direct matenials price and quantity variances. ( Round your intermediate calculati ons and tinal answers to 2 decimal places. Indicate the effect of each variance by selecting "F" tor favorable, "U" for unfavorable.) Direct Materilal Price Variance Direct Materlal Quantity VarlanceStep by Step Solution
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