Atlas Manufacturing has established the following standards for the prime costs of one unit of its main product, gaming chairs: Standard Details: ⚫ Direct material: 8.00 yards at $3.50 per yard = $28.00 ⚫ Direct labor: 2.20 hours at $12.00 per hour = $26.40 ⚫ Total standard cost per unit = $54.40 During July, Atlas: ⚫ Purchased 240,000 yards of direct material for $876,000 ⚫ Paid total wages of $450,000 (85% for direct labor) ⚫ Produced 28,000 chairs ⚫ Used 196,000 yards of material and 64,400 direct labor hours Calculate the direct material price variance for July.

Atlas Manufacturing has established the following standards for the prime costs of one unit of its main product, gaming chairs: Standard Details: ⚫ Direct material: 8.00 yards at $3.50 per yard = $28.00 ⚫ Direct labor: 2.20 hours at $12.00 per hour = $26.40 ⚫ Total standard cost per unit = $54.40 During July, Atlas: ⚫ Purchased 240,000 yards of direct material for $876,000 ⚫ Paid total wages of $450,000 (85% for direct labor) ⚫ Produced 28,000 chairs ⚫ Used 196,000 yards of material and 64,400 direct labor hours Calculate the direct material price variance for July.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter13: Emerging Topics In Managerial Accounting

Section: Chapter Questions

Problem 25BEA: During the week of May 10, Hyrum Manufacturing produced and shipped 16,000 units of its aluminum...

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Alpesh
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