Rudd Clothiers is a small company that manufactures long men's suits. The company used a standard cost
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Question:
Rudd Clothiers is a small company that manufactures long men's suits. The company used a standard cost accounting system. In May 2017, 10,700 suits were produced. The standard and actual cost data below are applied to May, when normal capacity was 12,500 direct labor hours. All purchased materials were used.
Cost element | Standard (per unit) | Real | ||
Direct materials | 9 yards at $4.80 per yard | $456,840 for 97,200 yards ($4.70 per yard) | ||
direct labor | 1.20 hours at $13.00 per hour | $182,776 for 13,640 hours ($13.40 per hour) | ||
overhead | 1.20 hours at $6.50 per hour (fixed $3.70; variable $2.80) | $48,400 fixed overhead $36,500 variable overhead |
The overhead is applied directly on the basis of working hours. At normal capacity, budgeted fixed overheads were $46,250 and budgeted variable overheads were $35,000.
A: Calculate total, price, and quantity deviations for
(1) materials and (2) labor.
B: Calculate the total overall load variance.
Related Book For
Accounting Principles
ISBN: 978-1118875056
12th edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
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