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Business, 09.04.2021 04:40, jhausenfleck541
P3-uZ Company produces leather sandals. The company employs a standard costing system and has the following standards in order to produce one pair of sandals:
Standard quantity Standard price
Direct materials 2 leather strips ?? per strip
Direct Labor 2.5 hours $12 per hour
Variable overhead 2.5 hours ?? per hour
During May, P3-uz used 16,300 leather strips in the production of sandals. P3-uz had no beginning inventories of any type for May. At May 31, P3-uz had 600 leather strips remaining in its direct materials inventory.
P3-uz Company reported the following variances for May:
Direct material price variance $40,525 favorable
Direct labor rate variance $27,560 unfavorable
Total direct labor variance $37,240 favorable
Variable overhead spending variance $9,280 unfavorable
Variable overhead efficiency variance $60,480 favorable
Required:
Calculate P3-uz's direct material quantity variance for May.
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Answers: 2
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P3-uZ Company produces leather sandals. The company employs a standard costing system and has the fo...
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