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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.

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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