During May, Joliet Fabrics Corporation manufactured 500 units of a special multilayer fabric with the trade name
Question:
During May, Joliet Fabrics Corporation manufactured 500 units of a special multilayer fabric with the trade name Stylex. The following information from the Stylex production department also pertains to May.
Direct material purchased: 18,000 yards at $1.38 per yard................................ $24,840
Direct material used: 9,500 yards at $1.38 per yard............................................ 13,110
Direct labor: 2,100 hours at $9.15 per hour.......................................................... 19,215
The standard prime costs for one unit of Stylex are as follows:
Direct material: 20 yards at $1.35 per yard.............................................................. $27
Direct labor: 4 hours at $9.00 per hour...................................................................... 36
Total standard prime cost per unit of output........................................................... $63
Required:
Compute the following variances for the month of May, indicating whether each variance is favorable or unfavorable.
1. Direct-material price variance.
2. Direct-material quantity variance.
3. Direct-material purchase price variance.
4. Direct-labor rate variance.
5. Direct-labor efficiency variance.
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Managerial Accounting Creating Value in a Dynamic Business Environment
ISBN: 978-1259569562
11th edition
Authors: Ronald W. Hilton