Yeaman Whoa, LLP uses a standard cost system. During May, Yeaman manufactured 15
ID: 2369182 • Letter: Y
Question
Yeaman Whoa, LLP uses a standard cost system. During May, Yeaman manufactured 15,000 pillowcases, using 27,800 yards of fabric costing $3.05 per yard and incurring direct labor costs of $20,008 for 3,280 hours of direct labor. The standard cost per pillowcase assumes 1.75 yards of fabric at $3.10 per yard, and 0.20 hours of direct labor at $5.95 per hour. Compute both the price variance and quantity variance relating to direct materials used in the manufacture of pillowcases in May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Unfavorable amounts should be indicated bv a minus sign. Omit the "$" sign in your response.) Compute both the rate variance and efficiency variance for direct labor costs incurred in manufacturing pillowcases in May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your answers to 2 decimal places. Unfavorable amounts should be indicated bv a minus sign. Omit the "$" sign in your response.)Explanation / Answer
a)Materials Price Variance = (Actual quantity purchased
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