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A manufacturer of custom suits has set the following standard cost for each suit: • Direct materials: 4 metres @ $28 per metre • Direct labour: 1.25 hours @ $26 per hour The following information relates to the actual results for May: • 520 suits were produced. • 2,132 metres of material was purchased for $28.50 per metre. • There was no opening or closing inventory of raw materials. 624 labour hours were worked at a cost of $26.50 per hour. What was the material efficiency variance?

A manufacturer of custom suits has set the following standard cost for each suit: • Direct materials: 4 metres @ $28 per metre • Direct labour: 1.25 hours @ $26 per hour The following information relates to the actual results for May: • 520 suits were produced. • 2,132 metres of material was purchased for $28.50 per metre. • There was no opening or closing inventory of raw materials. 624 labour hours were worked at a cost of $26.50 per hour. What was the material efficiency variance?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A manufacturer of custom suits has set the following standard cost for each suit: • Direct materials: 4 metres @ $28 per metre • Direct labour: 1.25 hours @ $26 per hour The following information relates to the actual results for May: • 520 suits were produced. • 2,132 metres of material was purchased for $28.50 per metre. • There was no opening or closing inventory of raw materials. • 624 labour hours were worked at a cost of $26.50 per hour. What was the material efficiency variance?
Transcribed Image Text:A manufacturer of custom suits has set the following standard cost for each suit: • Direct materials: 4 metres @ $28 per metre • Direct labour: 1.25 hours @ $26 per hour The following information relates to the actual results for May: • 520 suits were produced. • 2,132 metres of material was purchased for $28.50 per metre. • There was no opening or closing inventory of raw materials. • 624 labour hours were worked at a cost of $26.50 per hour. What was the material efficiency variance?
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