General accounting question Cozy Textiles manufactures custom throw pillows. The following are the cost standards foreach pillow:Direct materials (fabric) 1.5 yards per pillow at $8.50 per yardDirect labor0.4 direct labor hours per pillow at $22.00 per hourActual results from last month's production of 3,200 pillows are as follows:Actual cost of 5,120 yards of direct material (fabric) purchased $46,080Actual yards of direct material (fabric) usedActual wages for 1,400 direct labor hours workedWhat is the actual cost per yard of fabric purchased?4,960$29,400

Step 1: Definition of Actual Cost per Yard of Fabric PurchasedThe actual cost per yard of fabric…

Answered: Cozy Textiles manufactures custom throw…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PB: Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen...

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What is the actual cost per yard of fabric purchased?
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Nolan Mills uses a standard cost system. During May, Nolan manufactured 15,000 pillowcases, using 27,400 yards of fabric costing $3.05 per yard and incurring direct labor costs of $18,297 for 3,210 hours of direct labor. The standard cost per pillowcase assumes 1.75 yards of fabric at $3.10 per yard, and 0.20 hours of direct labor at $5.95 per hour. a. Compute both the price variance and quantity variance relating to direct materials used in the manufacture of pillowcases in May. b. Compute both the rate variance and efficiency variance for direct labor costs incurred in manufacturing pillowcases in May. (For all requirements, Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Round your answers to 2 decimal places.)
Nolan Mills uses a standard cost system. During May, Nolan manufactured 15,000 pillowcases, using 27,400 yards of fabric costing $3.05 per yard and incurring direct labor costs of $18,411 for 3,230 hours of direct labor. The standard cost per pillowcase assumes 1.75 yards of fabric at $3.10 per yard, and 0.20 hours of direct labor at $5.95 per hour. a. Compute both the price variance and quantity variance relating to direct materials used in the manufacture of pillowcases in May. b. Compute both the rate variance and efficiency variance for direct labor costs incurred in manufacturing pillowcases in May. (For all requirements, Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Do not round your intermediate values. Round your answers to 2 decimal places.)
Grandma's Attic Company produces soft pillows made from goose down. The company uses a standard cost system and has set the following standards for materials and labor for each pillow: Feathers from 5 large white geese (5 geese @ $5) $25Fabric to make pillow cases (3 yards @ $2) 6Direct labor (5 hours @ $8) 40Total prime cost $71During the month, the company produced 1,000 goose down pillows. Actual geese purchased were 5,100, at $4 per goose. Actual fabric purchased was 2,900 yards at $2.10 per yard. There were no beginning or ending inventories of geese or fabric. Actual direct labor was 5,200 hours at $7.75 per hour. A. Determine the total materials price variance and whether it is favorable or unfavorable.B. Determine the total materials usage variance and whether it is favorable or unfavorable.C. Determine the labor rate variance and whether it is favorable or unfavorable.D. Determine the labor efficiency variance and whether it is favorable or unfavorable.E. Make all necessary…
Alpesh
Subject: Acounting
ShipCo. produces storage crates that require 1.2 meters of material at $0.85 per meter and 0.1 direct labor hours at $15.00 per hour. Overhead is assigned at the rate of $9 per direct labor hour. What is the total standard cost for one unit of product that would appear on a standard cost card? a. $25.02. b. $11.52. c. $2.40. d. $2.52. e. $3.42.
Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below: Direct materials Direct labor variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours ? ? ? Materials Used $ 6,720 $ 5,355 standard Price or Rate $4.00 per yard Overhead is applied to production on the basis of direct labor-hours. During March, 420 backpacks were manufactured and sold. Selected Information relating to the month's production is given below: ? $ 420 U Total standard cost allowed* Actual costs incurred. Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance Variable overhead rate variance Variable overhead efficiency variance *For the month's production. The following additional Information is available for March's production: Actual direct labor-hours Difference between standard and actual cost per backpack produced during March ? $2 per…

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