Question: Helix Company produces several products in its

Helix Company produces several products in its factory, including a karate robe. The company uses a standard cost system to assist in the control of costs. According to the standards that have been set for the robes, the factory should work 780 direct labor-hours each month and produce 1,950 robes. The standard costs associated with this level of production are as follows:


During April, the factory worked only 760 direct labor-hours and produced 2,000 robes. The following actual costs were recorded during the month:


At standard, each robe should require 2.8 yards of material. All of the materials purchased during the month were used in production.

Required:
Compute the following variances for April:
1. The materials price and quantity variances.
2. The labor rate and efficiency variances.
3. The variable manufacturing overhead spending and efficiencyvariances.
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  • CreatedMarch 31, 2012
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