Direct material/labor variances
Not what you're looking for?
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.
Purchase this Solution
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
Solution Preview
See attached file
a. Direct-material price variance.
Price variance = (Actual price -standard price)X Actual material= $285.00 =(1.38-1.35) *9500
Unfavorable
...
Purchase this Solution
Free BrainMass Quizzes
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Basics of corporate finance
These questions will test you on your knowledge of finance.
Introduction to Finance
This quiz test introductory finance topics.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.