Caddy Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows: Direct material of 4 yards at $5.75 per yard. Direct labor of 3 hours at $19 per hour. Overhead applied per sleeping bag at $20. In the month of April, the company actually produced 5,200 sleeping bags using 27,300 yards of material at a cost of $5.10 per yard. The labor used was 11,700 hours at an average rate of $18.50 per hour. The actual overhead spending was $96,200. Determine the total materials variance.

Principles of Accounting Volume 2
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Chapter6: Activity-based, Variable, And Absorption Costing
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Caddy Sporting Goods manufactures sleeping bags. The manufacturing
standards per sleeping bag, based on 5,000 sleeping bags per month, are
as follows:
Direct material of 4 yards at $5.75 per yard.
Direct labor of 3 hours at $19 per hour.
Overhead applied per sleeping bag at $20.
In the month of April, the company actually produced 5,200 sleeping bags
using 27,300 yards of material at a cost of $5.10 per yard. The labor used
was 11,700 hours at an average rate of $18.50 per hour. The actual
overhead spending was $96,200.
Determine the total materials variance.
Transcribed Image Text:Caddy Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows: Direct material of 4 yards at $5.75 per yard. Direct labor of 3 hours at $19 per hour. Overhead applied per sleeping bag at $20. In the month of April, the company actually produced 5,200 sleeping bags using 27,300 yards of material at a cost of $5.10 per yard. The labor used was 11,700 hours at an average rate of $18.50 per hour. The actual overhead spending was $96,200. Determine the total materials variance.
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