Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Variance Computations and Explanations Outdoor Company manufactures camping tents from a lightweight synthetic fabric. Each tent has a standard materials cost of $20, consisting of

Variance Computations and Explanations

Outdoor Company manufactures camping tents from a lightweight synthetic fabric. Each tent has a standard materials cost of $20, consisting of 4 yards of fabric at $5 per yard. The standards call for 2 hours of assembly at $12 per hour. The following data were recorded for October, the first month of operations:

Fabric purchased 9,000 yards x $4.90 per yard

Fabric used in production of 1,700 tents 7,000 yards

Direct Labor used 3,6000 hours x $12.50 per hour

Required

a) Compute all standards cost variances for materials and labor

b) give one possible reason for each of the preceding variances

c) determine the standard variable cost of the 1,700 tents produced, seprated into direct materials and labors.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services An Integrated Approach

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan

18th Edition

0137879199, 9780137879199

More Books

Students also viewed these Accounting questions