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 fot the robes, the factory should work 780 direct labor-hours each month and produce 1950 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:

Required:
Compute the following variances for April:
a. The materials price and quantity variances.
b. The labor rate and efficiency variances.
c. The variable manufacturing overhead rate and efficiencyvariances.

Transcribed Image Text:

Direct materials Direct labor Total Per unit of Product S35.490 $7.020 S18.20 3.6 Variable manufactuing overhead (based on direct labor-hours) Total standard costs per unit 1.2 S23.00 Direct materials (6,000 yards) Direct labor Variable manufacturing overhaed 36,000 7,600 3,800 18 24