Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

what is the price variance ? Materials and Labor Variances Deporte Company produces single-colored t-shirts. Materials for the shirts are dyed in large vats. After

what is the price variance ? image text in transcribed
Materials and Labor Variances Deporte Company produces single-colored t-shirts. Materials for the shirts are dyed in large vats. After dying the materials for a given color, the vats must be cleaned and prepared for the next batch of materials to be colored. The following standards for changeover for a given batch have been established: Direct materials (2.4 lbs. @ $0.95) Direct labor (0.75 hr. $7.40) $2.28 5.55 Standard prime cost $7.83 During the year, 79,500 pounds of material were purchased and used for the changeover activity. There were 30,000 batches produced, with the following actual prime costs: Direct materials Direct labor $72,450 $181,357 (for 22,450 hrs.) Required: Compute the materials and tabor variances associated with the changeover activity, labeling each variance as favorable or unfavorable Material Variances Price variance 2,445 X Favorable Usage variance 7,125 Unfavorable Labor Variances Rate variance 15,227 ciency variance Unfavorable 370 Favorable

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_2

Step: 3

blur-text-image_3

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

Beyond Compliance Design Of A Quality System Tools And Templates For Integrating Auditing Perspectives

Authors: Janet Bautista Smith, Robert Alvarez

1st Edition

1951058232, 978-1951058234

More Books

Students also viewed these Accounting questions

Question

4. Does cultural aptitude impact ones emotional intelligence?

Answered: 1 week ago