Question
Warrier Gear manufactures clothing. A flannel shirt requires the following: Standard Direct Materials 2 square yards at $15 per yard Standard Manufacturing Labor 1.5 hours
Warrier Gear manufactures clothing. A flannel shirt requires the following:
Standard Direct Materials 2 square yards at $15 per yard
Standard Manufacturing Labor 1.5 hours at $25 per hour
During the third quarter, the company made 1,500 shirts and used 3,200 square yards of fabric costing $44,800. Direct labor totaled 2,100 hours for $56,700.
Required:
(A) Compute the direct materials price and efficiency variances for the quarter. Show all computations.
(B) Compute the direct manufacturing labor price and efficiency variances for the quarter. Show all computations.
(C) Describe 2 possible reasons for each of the following variances direct materials price variance, direct materials efficiency variance, direct manufacturing labor price variance, and direct manufacturing efficiency variance.
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