Question
Sole Purpose Shoe Company is owned and operated by Sarah Charles. The company manufactures casual shoes, with manufacturing facilities in your state. Sarah began the
Sole Purpose Shoe Company is owned and operated by Sarah Charles. The company manufactures casual shoes, with manufacturing facilities in your state. Sarah began the business this year, and while she has a great deal of experience in manufacturing popular and comfortable shoes, she needs some help in evaluating her results for the year, and asks for your help.
Under normal conditions, Sarah spends $8.40 per unit of materials, and it will take 3.6 units of material per pair of shoes. During July, Sole Purpose Shoe Company incurred actual direct materials costs of $60,632 for 6,890 units of direct materials in the production of 2,175 pairs of shoes.
Complete the table below, showing the direct materials variance relationships for July for Sole Purpose Shoe Company. If required, round your answers to two decimal places. When entering variances, use a negative number for a favorable variance, and a positive number for an unfavorable variance.
Actual Cost | Standard Cost | |||||||||
Actual Quantity | X | Actual Price | Actual Quantity | X | Standard Price | Standard Quantity | X | Standard Price | ||
| X |
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| X |
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=
| =
| =
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Unfavorable Direct Materials Price Variance: | Favorable Direct MaterialsQuantity Variance: | |||||||||
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Favorable Total Direct Materials Cost Variance: | ||||||||||
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