Question
Skysong Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and DL usage and
Skysong Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and DL usage and price expectations. Direct materials Direct labor 11 square yards per unit @ $5/square yard Variable-MOH 1.3 DL hours per unit 1.3 DL hours per unit @$14/DL hour @ $2.60/DL hour Throughout the year, Skysong used 4,095 DL hours in the process of making 3,250 tents. The company had originally planned to produce and sell 2,950 tents. Its actual variable-MOH costs totaled $10,852 for the year. (a) Determine Skysong's variable-MOH price and efficiency variances. Also identify whether the company's variable-MOH costs were under- or overapplied, and by how much. Variable-MOH price variance Variable-MOH efficiency variance $ Variable-MOH eTextbook and Media
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