During May, Joliet Fabrics Corporation manufactured 590 units of a special multilayer fabric with the trade name Stylex. The following information from the Stylex production department also pertains to May. Direct material purchased: 18,900 yards at $1.47 per yard Direct material used: 10,400 yards at $1.47 per yard Direct labor: 3,000 hours at $9.24 per hour. The standard prime costs for one unit of Stylex are as follows: Direct material: 20 yards at $1.44 per yard Direct labor: 4 hours at $9.00 per hour. Total standard prime cost per unit of output $28.80 36.00 $64.80 1. Direct-material price variance 2. Direct-material quantity variance 3. Direct-material purchase price variance 4. Direct-labor rate variance 5. Direct-labor efficiency variance $ 27,783 15,288 27,720 Required: Compute the following variances for the month of May. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).
During May, Joliet Fabrics Corporation manufactured 590 units of a special multilayer fabric with the trade name Stylex. The following information from the Stylex production department also pertains to May. Direct material purchased: 18,900 yards at $1.47 per yard Direct material used: 10,400 yards at $1.47 per yard Direct labor: 3,000 hours at $9.24 per hour. The standard prime costs for one unit of Stylex are as follows: Direct material: 20 yards at $1.44 per yard Direct labor: 4 hours at $9.00 per hour. Total standard prime cost per unit of output $28.80 36.00 $64.80 1. Direct-material price variance 2. Direct-material quantity variance 3. Direct-material purchase price variance 4. Direct-labor rate variance 5. Direct-labor efficiency variance $ 27,783 15,288 27,720 Required: Compute the following variances for the month of May. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:During May, Joliet Fabrics Corporation manufactured 590 units of a special multilayer fabric with the trade name Stylex. The following
information from the Stylex production department also pertains to May.
Direct material purchased: 18,900 yards at $1.47 per yard
Direct material used: 10,400 yards at $1.47 per yard
Direct labor: 3,000 hours at $9.24 per hour
The standard prime costs for one unit of Stylex are as follows:
Direct material: 20 yards at $1.44 per yard
Direct labor: 4 hours at $9.00 per hour
Total standard prime cost per unit of output
$28.80
36.00
$64.80
1. Direct-material price variance
2. Direct-material quantity variance
3. Direct-material purchase price variance
4. Direct-labor rate variance
5. Direct-labor efficiency variance
$ 27,783
15,288
27,720
Required:
Compute the following variances for the month of May. (Indicate the effect of each variance by selecting "Favorable" or
"Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance).
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