Camping out Co. manufactures down sleeping bags: * Each sleeping bag requires 4 pounds of down and takes 0.3 hours of direct labor. * The standard cost of the down used by camping out is $8 per pound and the standard labor cost is $10 per hour. * In November, Camping out purchased and used 15,000 pounds of down for $120,750. * During the month, the company manufactured 4,000 sleeping bags. * Payroll reported a total of 1,480 direct labor hours at a cost of $14,060. Instructions: Show and label all calculations. a) Compute the total material variance, the material price variance, and the materials quantity
Camping out Co. manufactures down sleeping bags: * Each sleeping bag requires 4 pounds of down and takes 0.3 hours of direct labor. * The standard cost of the down used by camping out is $8 per pound and the standard labor cost is $10 per hour. * In November, Camping out purchased and used 15,000 pounds of down for $120,750. * During the month, the company manufactured 4,000 sleeping bags. * Payroll reported a total of 1,480 direct labor hours at a cost of $14,060. Instructions: Show and label all calculations. a) Compute the total material variance, the material price variance, and the materials quantity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Camping out Co. manufactures down sleeping
bags:
* Each sleeping bag requires 4 pounds of down
and takes 0.3 hours of direct labor.
* The standard cost of the down used by camping
out is $8 per pound and the standard labor cost is
$10 per hour.
* In November, Camping out purchased and used
15,000 pounds of down for $120,750.
* During the month, the company manufactured
4,000 sleeping bags.
* Payroll reported a total of 1,480 direct labor
hours at a cost of $14,060.
Instructions: Show and label all calculations.
a) Compute the total material variance, the
material price variance, and the materials quantity
variance, also indicate whether each variance is
favorable or unfavorable.
b) Compute the total labor variance, the labor price
variance, and the labor quantity variance, also
indicate whether each variance is favorable or
unfavorable.
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