Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rudd Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2017, 11,250 suits were

image text in transcribed

Rudd Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2017, 11,250 suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was 14,000 direct labor hours. All materials purchased were used. Cost Element Direct materials Direct labor Overhead Standard (per unit) Actual 8 yards at $4.40 per yard 1.2 hours at $13.40 per hour 1.2 hours at $6.10 per hour (fixed $3.50; variable $2.60) $375,575 for 90,500 yards ($4.15 per yard) $200,925 for 14,250 hours ($14.10 per hour) $49,000 fixed overhead $37,000 variable overhead Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $49,000, and budgeted variable overhead was $36,400 Compute the total, price, and quantity variances for (1) materials and (2) labor. (Round answers to 0 decimal places, e.g. 125.) Total materials variance Materials price variance Materials quantity variance Total labor variance (1) s (2) Labor price variance Labor quantity variance Compute the total overhead variance Total overhead variance s

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Jr. Belverd E. Needles, Marian Powers

9th Edition

0547070020, 978-0547070025

More Books

Students also viewed these Accounting questions

Question

What was the evidence that Reyes knew he was breaking the law?

Answered: 1 week ago

Question

What factors contribute most to the comprehension of read text?

Answered: 1 week ago