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Direct material/labor variances

Need help computing direct material price and quantity variances, and direct labor rate and efficiency variances.

See attached file for complete problem
Adelphi Fabrics Corporation manufactured 500 units of a special multilayer fabric with the trade name Stylex during July. The following information from the Stylex production department pertains to July:

Direct material purchased: 18,000 yards at $1.38 per yard $24,840
Direct material used: 9,500 yards at $1.38 per yard 13,110
Direct labor used: 2,100 hours at $9.15 per hour 19,215

The standard prime costs for one unit of Stylex are:

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 July, indicating whether each variance is favorable or unfavorable.
a. Direct-material price variance.
b. Direct-material quantity variance.
c. Direct-labor rate variance.
d. Direct-labor efficiency variance.

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a. Direct-material price variance.

Price variance = (Actual price -standard price)X Actual material= $285.00 =(1.38-1.35) *9500
Unfavorable
...

Solution Summary

The solution calculates a. Direct-material price variance , b. Direct-material quantity variance. c. Direct-labor rate variance, d. Direct-labor efficiency variance and indicates whether they are favorable or unfavorable

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