TEMPLATE FOR Q1

TEMPLATE FOR Q2

Speeds, Inc. makes a popular jogging suit. The company wants to develop standards for material and labour. The standard price per unit for direct materials should be the final, delivered cost of materials. The standard price should reflect: The standard cost for one jogging suit would be: Standard Cost Card for Jogging Suits (1) * (2) (1) Standard Quantity or Hours 3.5 yards 2.0 hours (2) Standard Price or Rate $6 per yard $18 per hour Direct materials Direct labour Total standard cost per suit.. Standard Cost $21 36 $65 The following data are for last month's production: Number of suits completed. Cost of material purchased (20,000 yards * $5.40 per yard).. Yards of material used.. Cost of direct labor (10,500 hours @ $20 per hour..... 5,000 units $108,000 20,000 yards $210,000 1) Compute the material price and quantity variances for the jogging suits. 2) Compute the labour rate variance and labour efficiency variance for jogging suits. AQ x AP AQ x SP SOX SP Price Variance Quantity Variance Total Variance AHx AR AHX SR SHX SR Labour Rate Variance Labour Efficiency Variance Total Variance