Question
Tarptent manufactures camping tents from a lightweight synthetic fabric. Assume the companys two-person tent has a standard materials cost of $60, consisting of 4 yards
Tarptent manufactures camping tents from a lightweight synthetic fabric. Assume the companys two-person tent has a standard materials cost of $60, consisting of 4 yards of fabric at $15 per yard. The standards call for 1.5 hours of assembly at $20 per hour. The following data were recorded for October, the first month of operations:
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Compute all standard cost variances for materials and labor.
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Give one possible reason for each of the preceding variances.
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Determine the standard variable cost of the 1,200 tents produced, separated into direct materials and labor.
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