Yeaman Whoa, LLP uses a standard cost system. During May, Yeaman manufactured 15
ID: 2369534 • Letter: Y
Question
Yeaman Whoa, LLP uses a standard cost system. During May, Yeaman manufactured 15,000 pillowcases, using 27,200 yards of fabric costing $3.05 per yard and incurring direct labor costs of $16,484 for 3,170 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 $5.95 per hour. Compare both the price variance and quantity variance relating to direct materials used in the manufacturer of pillowcases in May. (indicate the effect of each variance y selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Unfavorable amounts should be indicated by a minus sign. Omit the "$" sign in your response.) Compute both the rate variance and efficiency variable for direct labor costs include in manufacturing pillowcases in May. (indicate the effect of each variance y selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Unfavorable amounts should be indicated by a minus sign. Omit the "$" sign in your response.)Explanation / Answer
go to my page i have solutions for those with diff numbers or use this:
Material Price Variance = 26600*(3.05 - 3.10) = 1330 (F)
Material Quantity Variance = (26600 - 1.75*15000)*3.10 = 1085 (U)
Labor Rate Variance = 21459 - 3110*5.95 = 2954.5 or 2955 (U)
Labor Efficiency Variance = (3110 - 3000)*5.95 = 654.5 or 655 (U)
unfavorable is negative so remember to do that. And be sure to switch numbers in problem and then solve.
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