Question
Speeds, Inc. makes a popular jogging suit. The company has developed standards for material, labour, and variable manufacturing overhead. The standard cost for one jogging
Speeds, Inc. makes a popular jogging suit. The company has developed standards for material, labour, and variable manufacturing overhead. The standard cost for one jogging suit would be: Standard Cost Card for Jogging Suits Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials............. 3.5 yards $6 per yard $21 Direct labour.................. 2.0 hours $18 per hour 36 Variable manufacturing overhead (based on direct labour hours)..... 2.0 hours $4 per hour 8 Total standard cost per suit $65 The following data are the actual results for last months production: Number of suits completed...................... 5,000 units Cost of material purchased (20,000 yards $5.40 per yard)........... $108,000 Yards of material used............................ 20,000 yards Cost of direct labour (10,500 hours @ $20 per hour)............ $210,000 Variable overhead costs incurred............ $40,950 Using the data above, compute, label and indicate favourable or unfavourable: All the material variances All the Direct labour variances All the Variable overhead variances
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