Purchase Solution

Material & Labor Variances with Formula

Not what you're looking for?

Ask Custom Question

Rapache Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost system. In May 2008, 11,200 suits were produced.The following standard and actual cost data applied to the month of May when normal capacity was 14,000 direct labor hours. All materials purchased were used.
Cost Element Standard (per unit) Actual
Direct materials 8 yards at $4.30 per yard $371,050 for 90,500 yards
($4.10 per yard)

Direct labor 1.2 hours at $13.50 per hour $201,630 for 14,300 hours
($14.10 per hour)

Overhead 1.2 hours at $6.00 per hour $49,000 fixed overhead
(fixed $3.50; variable $2.50) $37,000 variable overhead
Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $49,000, and budgeted variable overhead was $35,000.

Compute the total, price, and quantity variances for (1) materials and (2) labor.
Total materials variance $
Materials price variance $
Materials quantity variance $
Total labor variance $
Labor price variance $
Labor quantity variance $
Compute the total overhead variance $

Purchase this Solution

Solution Summary

The solution provies Material & Labor Variances formula's and calculate variances for Rapache Clothiers.

Solution Preview

Check the solution in the attached sheet.

Formulas

Material Price Variance = (Actual Price - Standard Price) * Actual Quantity

Material ...

Purchase this Solution


Free BrainMass Quizzes
Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.