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# Manhattan Fabrics Corporation

* Attached picture is a scan of the full problem. I am looking for direction as to how to complete this problem. I am not very good with managerial accounting.

During March Manhattan Fabrics Corporation manufactured 1,000 units of a special multilayer fabric with the trade name Stylex. The following information from the Stylex production department also pertains to March.

Direct material purchased: 36,000 yards at \$1.38 per yard \$49,680
Direct material used: 19,000 yards at \$1.38 per yard \$26,220
Direct labor: 4,200 hours at \$9.15 per hour \$38,430

The standard prime costs for one unit of Stylex are as follows:

Direct material: 20 yards at \$1.35 per yard \$27
Direct labor: 4 hours at \$9.00 per hour \$36
Total standard prime cost per unit of output \$63

Required: Compute the following variances for the month of March, indicating whether each variance is favorable or unfavorable.

#### Solution Preview

During March Manhattan Fabrics Corporation manufactured 1,000 units of a special multilayer fabric with the trade name Stylex. The following information from the Stylex production department also pertains to March.

Direct material purchased: 36,000 yards at \$1.38 per yard \$49,680
Direct material used: 19,000 yards at \$1.38 per yard \$26,220
Direct labor: 4,200 hours at \$9.15 per hour \$38,430

The standard prime costs for one unit of Stylex ...

#### Solution Summary

This solution is comprised of a detailed explanation to compute the following variances for the month of March, indicating whether each variance is favorable or unfavorable.

\$2.19