Splish Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2020, 10,600 suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was 16,000 direct labor hours. All materials purchased were used. Cost Element Direct materials Direct labor Overhead (a) (1) 10 yards at $4.90 per yard (2) 1.20 hours at $13.00 per hour 1.20 hours at $6.40 per hour (fixed $3.60; variable $2.80) Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $57,600, and budgeted variable overhead was $44,800. Compute the total, price, and quantity variances for (1) materials and (2) labor. (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 52.) Total materials variance Standard (per unit) Materials price variance Total labor variance Labor price variance Materials quantity variance $ Labor quantity variance $ $ Actual $ $501,020 for 106,600 yards ($4.70 per yard) $182,508 for 13,620 hours ($13.40 per hour) $49,200 fixed overhead $36,500 variable overhead $
Splish Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2020, 10,600 suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was 16,000 direct labor hours. All materials purchased were used. Cost Element Direct materials Direct labor Overhead (a) (1) 10 yards at $4.90 per yard (2) 1.20 hours at $13.00 per hour 1.20 hours at $6.40 per hour (fixed $3.60; variable $2.80) Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $57,600, and budgeted variable overhead was $44,800. Compute the total, price, and quantity variances for (1) materials and (2) labor. (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 52.) Total materials variance Standard (per unit) Materials price variance Total labor variance Labor price variance Materials quantity variance $ Labor quantity variance $ $ Actual $ $501,020 for 106,600 yards ($4.70 per yard) $182,508 for 13,620 hours ($13.40 per hour) $49,200 fixed overhead $36,500 variable overhead $
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 28P: Haversham Corporation produces dress shirts. The company uses a standard costing system and has set...
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