Ballard Outdoor Equipment manufactures hiking backpacks. The manufacturing standards per backpack, based on 4,500 backpacks per month, are as follows: Standard Amount Direct material of 7 yards at $6 per yard $42 Direct labor of 4 hours at $22 per hour $88 Overhead applied per backpack $15 In the month of June, the company actually produced 3,800 backpacks using 26,600 yards of material at a cost of $8.40 per yard. The labor used was 15,200 hours at an average rate of $21.75 per hour. The actual overhead spending was $62,700. Determine the materials price variance.

Ballard Outdoor Equipment manufactures hiking backpacks. The manufacturing standards per backpack, based on 4,500 backpacks per month, are as follows: Standard Amount Direct material of 7 yards at $6 per yard $42 Direct labor of 4 hours at $22 per hour $88 Overhead applied per backpack $15 In the month of June, the company actually produced 3,800 backpacks using 26,600 yards of material at a cost of $8.40 per yard. The labor used was 15,200 hours at an average rate of $21.75 per hour. The actual overhead spending was $62,700. Determine the materials price variance.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...

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