We produce canvas bags that require .75 yards of fabric and .6 direct labor hours. The fabric costs $10 per yard and our hourly labor rate is $15. Variable manufacturing overhead is assigned on the basis of direct labor hours and the standard hourly rate for variable manufacturing overhead is $5 per hour. We produced 1200 bags in September and incurred the following variable manufacturing costs: Direct material 920 yards @ at a total cost of $8,924. Direct labor is 715 hours at a total cost of 10,796.50. Variable manufacturing overhead 715 hours at a total of 3,503.50. -Calculate an efficiency (quality) variance for direct labor. -Calculate a price variance for direct materials

We produce canvas bags that require .75 yards of fabric and .6 direct labor hours. The fabric costs $10 per yard and our hourly labor rate is $15. Variable manufacturing overhead is assigned on the basis of direct labor hours and the standard hourly rate for variable manufacturing overhead is $5 per hour. We produced 1200 bags in September and incurred the following variable manufacturing costs: Direct material 920 yards @ at a total cost of $8,924. Direct labor is 715 hours at a total cost of 10,796.50. Variable manufacturing overhead 715 hours at a total of 3,503.50. -Calculate an efficiency (quality) variance for direct labor. -Calculate a price variance for direct materials

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 11EB: Fitzgerald Company manufactures sewing machines, and they produced 2,500 this past month. The...

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