Aticc produces yoga mats using batting and bias tape, and fabric. To produce a mat requires 500 cm of fabric ($3 per meter) and 300 cm of batting and bias tape ($25 per meter). Each mat requires 3 minutes of labour ($19.5 per hour). In 2017, production of 40,000 mats was produced using 197,750 meters of fabric ($594,600), 119,250 meters of batting and bias tape ($151,450) and 2,150 hours ($41,750).

Required:

a. Compute labour and material variances.

b. Compute mix and yield material variances

c. Explain why the variances happened?

Answer rating: 100% (QA)

a Compute Labour and Material Variances Lets start by calculating the labor and material variances Labor Variance Labor Rate Variance Actual Hours Worked Standard Hours x Standard RateLabor Rate Varia... View the full answer