Question
[The following information applies to the questions displayed below.] European Styles, Inc., manufactures womens blouses of one quality, which are produced in lots to fill
[The following information applies to the questions displayed below.] European Styles, Inc., manufactures womens blouses of one quality, which are produced in lots to fill each special order. Its customers are department stores in various cities. European Styles sews the particular stores labels on the blouses. During November, the company worked on three orders, for which the months job-cost records disclose the following data.
Lot Number | Boxes in Lot | Material Used (yards) | Hours Worked | ||||||
22 | 1,000 | 23,160 | 3,960 | ||||||
23 | 1,700 | 38,600 | 6,810 | ||||||
24 | 1,200 | 27,635 | 3,880 | ||||||
The following additional information is available:
The firm purchased 95,000 yards of material during November at a cost of $106,700.
Direct labor during November amounted to $219,750. According to payroll records, production employees were paid $15.00 per hour.
There was no work in process on November 1. During November, lots 22 and 23 were completed. All material was issued for lot 24, which was 80 percent completed as to direct labor.
The standard costs for a box of six blouses are as follows:
Direct material | 23 | yards at | $ | 1.10 | per yard | $ | 25.30 | |
Direct labor | 4 | hours at | $ | 14.60 | per hr. | 58.40 | ||
Production overhead | 4 | hours at | $ | 12.00 | per hr. | 48.00 | ||
Standard cost per box | $ | 131.70 | ||||||
Direct-material purchase price variance.
Direct-material quantity variance.
Direct-labor efficiency variance.
Direct-labor rate variance.
Required: 1. Prepare a schedule computing the standard cost of lots 22, 23, and 24 for November. (Round "Standard Cost per Box" to 2 decimal places.) 2. For each lot produced during November, complete the following schedules: a. Direct-material purchase price variance. b. Direct-material quantity variance. c. Direct-labor efficiency variance. d. Direct-labor rate variance. Complete this question by entering your answers in the tabs below. For each lot produced in November, complete the following schedule for the direct-material purchase price variance. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).) and enter "0" for no effect (i.e., zero variance). Round "Standard price" to 2 decimal places.) Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started