Averill Corporation manufactures windmills made of fabric using a standard costi

Question

Averill Corporation manufactures windmills made of fabric using a standard costing system. Averill allocates overhead based on the number of direct labor hours. The following are the company's cost and standards data: Answer the following questions. Each question is worth 1 point. 1. Calculate the standard cost of one windmill: 2. Calculate direct material variances. Enter as a positive if favorable and negative if unfavorable. a. Direct material price variance: b. Direct material quantity variance: 3. Calculate direct labor variances. FOR 3a ONLY, ENTER AS A NEGATIVE IF FAVORABLE AND POSITIVE IF UNFAVORABLE. For 3b, ENTER AS A POSITIVE IF FAVORABLE AND NEGATIVE IF UNFAVORABLE. a. Direct labor rate variance: b. Direct labor efficiency variance:

Explanation / Answer

DM 266 DL 63.6 Variable MOH 27.6 FOH 58.8 Std cost 416 DM price variance ( SP AP ) × AQ (14-12.59)*38100                         53,721.00 F AP=547552/43480                                  12.59 Qty variance=( SQ AQ ) × SP ((2400*19)-38100)*14 105000 F DL rate= ( SR AR ) × AH (10.6-11.29)*8210 -5664.9 U AR= 92676/8210                                  11.29

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