Question 1

Rudd Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2020,10,500suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was15,500direct labor hours. All materials purchased were used.

Cost Element

Standard (per unit)

Actual

Direct materials7yards at $4.20per yard$300,915for74,300yards ($4.05per yard)Direct labor1.10hours at $13.00per hour$164,255for12,350hours ($13.30per hour)Overhead1.10hours at $6.50per hour (fixed $3.60; variable $2.90)$48,500fixed overhead $37,500variable overhead

Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $55,800, and budgeted variable overhead was $44,950.

(a)

Compute the total, price, and quantity variances for (1) materials and (2) labor.(Round per unit values to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 52.)

(1)Total materials variance$

Materials price variance$

Favorable

Unfavorable

Neither favorable nor unfavorable

Materials quantity variance$

Unfavorable

Favorable

Neither favorable nor unfavorable

(2)Total labor variance$

Neither favorable nor unfavorable

Unfavorable

Favorable

Labor price variance$

Neither favorable nor unfavorable

Unfavorable

Favorable

Labor quantity variance$

Unfavorable

Neither favorable nor unfavorable

Favorable

Neither favorable nor unfavorable

Unfavorable

Favorable

(b)

Compute the total overhead variance.

Total overhead variance$