Question text

VARIANCE ANALYSIS ON PRODUCTION OF SHIRTS:

Information
	Standard	Actual
Direct material price per yard	$5.00	$5.20
Direct material quantity (yards)	1,000	990
Direct labor rate per hour	$10.00	$9.75
Direct labor hours	1,750	1,700
Units produced	2000	1990

Calculate/create the Standard Cost for one shirt (select from each drop down box):

STANDARD COST CALCULATION FOR ONE SHIRT	STANDARD PRICE/RATE	STANDARD QUANTITY or TIME per Shirt	STD COST per SHIRT
Direct Materials	$Choose...5.005.209.7510.00 per yard	Choose...1,0001,7009901,7501,9902,000 / Choose...1,0001,7009901,7501,9902,000 = Choose...0.500.4950.850.875 yd per unit	$ 2.002.502.608.668.75
Direct Labor	$Choose...5.005.209.7510.00 per hour	Choose...1,0001,7009901,7501,9902,000 / Choose...1,0001,7009901,7501,9902,000 = Choose...0.500.4950.850.875 hr per unit	$ 2.002.502.608.668.75
Factory Overhead	$2.00 per hour	0.875 hr per unit	$1.75
Total Standard Cost per Unit			$Choose...13.1013.0013.2012.91

Note: to calculate the standard quantity, take the total standard quantity divided by the total standard units.