Camping Company manufactures camping tents from a lightweight synthetic fabric. Each tent uses the following standard...

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Camping Company manufactures camping tents from a lightweight synthetic fabric. Each tent uses the following standard material and labor costs. Direct Labor Direct Material Standard cost per tent 2 hours at 4 yards at $15.00 $5.00 The following data was recorded for February, the first month of operations: Fabric purchased Fabric used in production Direct labor used Actual number of Tents produced 7000 yards 6,800 yards 3300 hours 1,640 Tents $5.10 per yard $15.50 per hour $30 $20 Required: Make sure you do not forget to label the variances U or F. You need to show your work either by cell reference or showing your calculation to the side. 1. Calculate the direct materials price and quantity variance and designate U or F. Please note that the materials price variance is based on actual material purchased and the quantity variance is based on material used. Materials price variance Materials Quantity variance 2. Calculate the direct labor rate and efficiency variances and designate U or F. Labor rate variance Labor Efficiency variance 3. Explain one possible reason for each of the preceding variances listed below. Your explanation must be in complete sentences with proper grammar and spelling. Materials price variance Materials Quantity variance Labor rate variance Labor Efficiency variance Camping Company manufactures camping tents from a lightweight synthetic fabric. Each tent uses the following standard material and labor costs. Direct Labor Direct Material Standard cost per tent 2 hours at 4 yards at $15.00 $5.00 The following data was recorded for February, the first month of operations: Fabric purchased Fabric used in production Direct labor used Actual number of Tents produced 7000 yards 6,800 yards 3300 hours 1,640 Tents $5.10 per yard $15.50 per hour $30 $20 Required: Make sure you do not forget to label the variances U or F. You need to show your work either by cell reference or showing your calculation to the side. 1. Calculate the direct materials price and quantity variance and designate U or F. Please note that the materials price variance is based on actual material purchased and the quantity variance is based on material used. Materials price variance Materials Quantity variance 2. Calculate the direct labor rate and efficiency variances and designate U or F. Labor rate variance Labor Efficiency variance 3. Explain one possible reason for each of the preceding variances listed below. Your explanation must be in complete sentences with proper grammar and spelling. Materials price variance Materials Quantity variance Labor rate variance Labor Efficiency variance

Answer rating: 100% (QA)

Camping Company Direct Materials and Labor Variances 1 Direct Materials Variances Materials Price Variance Formula Actual Price Standard Price x Actua... View the full answer