Camisa Company produces single-colored t-shirts. Materials for the shirts are dyed in large vats. After dying the
Question:
Direct materials (2.5 lbs. @ $0.90) $2.25
Direct labor (0.75 hr. @ $7.00) 5.25
Standard prime cost $7.50
During the year, 53,000 pounds of material were purchased and used for the changeover activity. There were 20,000 batches produced, with the following actual prime costs:
Direct materials $42,000
Direct labor 102,000 (for 14,900 hrs.)
Required:
Compute the materials and labor variances associated with the changeover activity, labeling each variance as favorable or unfavorable.
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Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
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