15) Nancy\'s Draperies manufactures curtains. A certain window curtain requires

Question

15) Nancy's Draperies manufactures curtains. A certain window curtain requires the 18)_ following 10 square yards at $5 per yard 5 hours at $10 Direct materials standard Direct manufacturing labor standard During the second quarter, the company made 1,500 curtains and used 14,000 square yards of fabric costing $72,000. Direct labor totaled 7,600 hours for $83,600. Required: Compute the direct materials price and efficiency variances for the quarter. Compute the direct manufacturing labor price and efficiency variances for the quarter. a. b.

Explanation / Answer

a)

Actual price is greater than standard price. so it will be Unfavourable

Material Quantity variance = Standard Price * (Actual Quantity used - Standard Quantity)

Actual quantity is less than standard quantity. so it will be Favourable

b)

Actual rate is greater than standard rate. so it will be Unfavourable

Actual hours is greater than standard hours. so it will be Unfavourable

Material Price variance = Actual Quantity * (Actual Price - Standard Price) Material Price variance = 14,000 * (($72,000/14,000) - $5) Material Price variance = $2,000 U

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

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