Problem 25-3A Hopkins Clothiers is a small company that manufactures tall-men’s

Question

Problem 25-3A

Hopkins Clothiers is a small company that manufactures tall-men’s suits. The company has used a standard cost accounting system. In May 2014, 10,600 suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was 16,500 direct labor hours. All materials purchased were used.

Cost Element

Standard (per unit)

Actual

Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $57,750, and budgeted variable overhead was $44,550.

(a) Compute the total, price, and quantity variances for (1) materials and (2) labor. (Round answers to 0 decimal places, e.g. 125.)

(b) Compute the total overhead variance.

Cost Element

Standard (per unit)

Actual

Direct materials 10 yards at $4.10 per yard $415,467 for 106,530 yards ($3.90 per yard) Direct labor 1.30 hours at $13.00 per hour $195,294 for 14,520 hours ($13.45 per hour) Overhead 1.30 hours at $6.20 per hour (fixed $3.50; variable $2.70) $49,800 fixed overhead $37,000 variable overhead

Explanation / Answer

a Total Labor Variance         : (10600*1.2*13)-195294 179140-195294 16154 U Labour Rate Variance         : (13.00-13.45)14520 6534 U Labour Quantity Variance    : (10600*1.2)-14520 1800 U Total Material Variance         : (10600*10*4.1)-415467 19133 F Material Price Variance         : (4.1-3.9)106000 21200 F Material Quantity Variance    : (10600*10)-106530 530 U b Total Overhead Variance         : (10600*1.2*6.2)-86800 7936 U

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.