managerial accounting

-/9 View Policies Current Attempt in Progress Marigold, Ltd, manufactures shirts, which it sells to customers for embroidering with various slogans and emblems. The standard cost card for the shirts is as follows. Standard Price Standard Quantity Standard Cost Direct materials $3 per yard $6.00 2.00 yards 0.75 DLH Direct labor $14 per DLH 10.50 Variable overhead $3.20 per DLH 0.75 DLH 2.40 Fixed overhead $3 per DLH 0.75 DLH 2.25 $21.15 Sandy Robison, operations manager, was reviewing the results for November when he became upset by the unfavorable variances he was seeing. In an attempt to understand what had happened, Sandy asked CFO Suzy Summers for more information. She provided the following overhead budgets, along with the actual results for November The company purchased 82,000 yards of fabric and used 93,600 yards of fabric during the month. Fabric purchases during the month were made at $2.80 per yard. The direct labor payroll ran $459,375, with an actual hourly rate of $12.25 per direct labor hour. The annual budgets were based on the production of 600,000 shirts, using 450,000 direct labor hours. Though the budget for November was based on 45,500 shirts, the company actually produced 42,000 shirts during the month. Variable Overhead Budget Annual Budget Per Shirt November-Actual $449,000 $1.20 $49,300 Indirect material Indirect labor 295.000 0.75 30,900 Equipment repair 195.000 0.30 20,800 Equipment power 51.000 0.15 7,400 Total $990,000 $2.40 $108,400 Question 11 of 11