NMENT RESOURCES n 10/Chapter 25 d Homework blem 25 Problem 25-3A Rudd Clothiers
ID: 2556128 • Letter: N
Question
NMENT RESOURCES n 10/Chapter 25 d Homework blem 25 Problem 25-3A Rudd Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2017, 10,100 sults cost data applied to the month of May when normal capacity was 14,000 direct labor hours. All materials purchased were used. were produced The folowing standard and actai Cost Element Direct materials 7 yards at $4.70 per yard w Score w Results bv StudvDirect labor tive $322,200 for 71,600 yards (s4.50 per yard) $173,166 for 13,020 hours ($13.30 per hour 1.20 hours at $13.00 per hour 1.20 hours at $6.40 per hour (fixed $3.90; vaniable $2.50) $49,400 fixed overhead $37,500 vaniable overhead Overhead 4.600, and budgeted variable averhead nes s3s.nco Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were s5Explanation / Answer
1) Total material variance = Actual material cost-Standard material cost = 322200-10100*7*4.7 = $ 10,090 Favorable Materials price variance = Actual material cost-Actual quantity*Standard rate = 322200-71600*4.7 = $ 14,320 Favorable Materials quantity variance = (Actual quantity-Standard quantity)*Standard rate = (71600-10100*7)*4.7 = $ 4,230 Unfavorable 2) Total labor variance = Actual labor cost-Standard labor cost =173166-10100*1.2*13 = $ 15,606 Unfavorable Labor price variance = Acutal labor cost-Actual hours*Standard rate = 173166-13020*13 = $ 3,906 Unfavorable Labor quantity variance = (Actual hours-Standardhours)*Standard rate = (13020-10100*1.2)*13 = $ 11,700 Unfavorable b) Total overhead variance = Actual overhead - Overhead assigned = (49400+37500)-13020*6.4 = $ 3,572.00 Unfavorable
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.