Cozy Textiles manufactures custom throw pillows. The following are the cost standards for each pillow: Direct materials (fabric) 1.5 yards per pillow at $8.50 per yard Direct labor 0.4 direct labor hours per pillow at $22.00 per hour Actual results from last month's production of 3,200 pillows are as follows: Actual cost of 5,120 yards of direct material (fabric) purchased $46,080 Actual yards of direct material (fabric) used Actual wages for 1,400 direct labor hours worked What is the actual cost per yard of fabric purchased? 4,960 $29,400

Cozy Textiles manufactures custom throw pillows. The following are the cost standards for each pillow: Direct materials (fabric) 1.5 yards per pillow at $8.50 per yard Direct labor 0.4 direct labor hours per pillow at $22.00 per hour Actual results from last month's production of 3,200 pillows are as follows: Actual cost of 5,120 yards of direct material (fabric) purchased $46,080 Actual yards of direct material (fabric) used Actual wages for 1,400 direct labor hours worked What is the actual cost per yard of fabric purchased? 4,960 $29,400

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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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.)
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