Rudd clothiers is a small company that manufactures tall-men’s suits. the company has used a standard cost accounting system. in may 2017, 11,250 suits were produced. the following standard and actual cost data applied to the month of may when normal capacity was 14,000 direct labor hours. all materials purchased were used.
cost element
standard (per unit)
actual
direct materials 8 yards at $4.40 per yard $375,575 for 90,500 yards ($4.15 per yard)
direct labor 1.2 hours at $13.40 per hour $200,925 for 14,250 hours ($14.10 per hour)
overhead 1.2 hours at $6.10 per hour (fixed $3.50; variable $2.60) $49,000 fixed overhead $37,000 variable overhead
overhead is applied on the basis of direct labor hours. at normal capacity, budgeted fixed overhead costs were $49,000, and budgeted variable overhead was $36,400.
(a)
compute the total, price, and quantity variances for (1) materials and (2) labor. (round answers to 0 decimal places, e. g. 125.)
(1) total materials variance $rudd clothiers is a small company that manufacture rudd clothiers is a small company that manufacture unfavorableneither favorable nor unfavorablefavorable
materials price variance $rudd clothiers is a small company that manufacture rudd clothiers is a small company that manufacture unfavorableneither favorable nor unfavorablefavorable
materials quantity variance $rudd clothiers is a small company that manufacture rudd clothiers is a small company that manufacture neither favorable nor
(2) total labor variance $rudd clothiers is a small company that manufacture rudd clothiers is a small company that manufacture neither favorable nor
labor price variance $rudd clothiers is a small company that manufacture rudd clothiers is a small company that manufacture favorable nor unfavorable
labor quantity variance $rudd clothiers is a small company that manufacture rudd clothiers is a small company that manufacture favorableneither favorable nor unfavorableunfavorable
(b)
compute the total overhead variance.
total overhead variance $rudd clothiers is a small company that manufacture rudd clothiers is a small company that manufacture unfavorableneither favorable nor unfavorablefavorable