Question
Pretty Draperies manufactures curtains. A certain window requires the following: Direct materials standard: 10 square yards at $5 per yard Direct labor standard: 5 hours
- Pretty Draperies manufactures curtains. A certain window requires the following:
Direct materials standard: 10 square yards at $5 per yard
Direct labor standard: 5 hours at $10
During the second quarter, the company made 1,500 curtains and used 14,000 square yards of fabric costing $68,600. Actual direct labor hours used totaled 7,600 hours for $79,800.
Compute the direct manufacturing labor rate (price) and quantity (efficiency) variances for the quarter (show calculations):
DL rate variance $_____________________
Circle one: Favorable Unfavorable
DL quantity variance $__________________
Circle one: Favorable Unfavorable
Prepare (1) journal entry to record the variances and (2) to close variance accounts assuming that variances are immaterial:
___________________________________________________DR_____________CR__________(1)_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ (2)____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
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