Crane Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2022, 10,000 suits were produced. The following standard and actual cost data applied to the month of May, when normal capacity was 12,500 direct labor hours. All materials purchased were used. Cost Element Direct materials Direct labor Overhead 6 yards at $4.00 per yard 1.10 hours at $13.00 per hour 1.10 hours at $6.00 per hour (fixed $3.50; variable $2.50) Total materials variance Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $43,750, and budgeted variable overhead was $31,250. (a) Materials price variance Compute the total, price, and quantity variances for (1) materials and (2) labor. (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to O decimal places, e.g. 52.) Materials quantity variance Standard (per unit) Total labor variance Labor price variance Labor quantity variance Actual $235,950 for 60,500 yards ($3.90 per yard) $154,280 for 11,600 hours ($13.30 per hour) $48,000 fixed overhead $36,500 variable overhead $

Crane Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2022, 10,000 suits were produced. The following standard and actual cost data applied to the month of May, when normal capacity was 12,500 direct labor hours. All materials purchased were used. Cost Element Direct materials Direct labor Overhead 6 yards at $4.00 per yard 1.10 hours at $13.00 per hour 1.10 hours at $6.00 per hour (fixed $3.50; variable $2.50) Total materials variance Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $43,750, and budgeted variable overhead was $31,250. (a) Materials price variance Compute the total, price, and quantity variances for (1) materials and (2) labor. (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to O decimal places, e.g. 52.) Materials quantity variance Standard (per unit) Total labor variance Labor price variance Labor quantity variance Actual $235,950 for 60,500 yards ($3.90 per yard) $154,280 for 11,600 hours ($13.30 per hour) $48,000 fixed overhead $36,500 variable overhead $

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Description: Please do not give solution in image format thanku (b)Compute the total overhead variance.Total overhead variance Crane Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. InMay 202

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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