fabric ($3 per meter) and 300 cm of batting and bias tape ($25 per meter). Each mat requires 3 minutes of labour ($19.5 per hour). In 2017, production of 40,000 mats was produced using 197,750 meters of fabric ($594,600), 119,250 meters of batting and bias tape ($151,450) and 2,150 hours ($41,750). Compute labour and material variances and mix and yield material variances and Explain why the variances happened.
fabric ($3 per meter) and 300 cm of batting and bias tape ($25 per meter). Each mat requires 3 minutes of labour ($19.5 per hour). In 2017, production of 40,000 mats was produced using 197,750 meters of fabric ($594,600), 119,250 meters of batting and bias tape ($151,450) and 2,150 hours ($41,750). Compute labour and material variances and mix and yield material variances and Explain why the variances happened.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hannah Rama produces yoga mats using batting and bias tape, and fabric. To produce a mat requires 500 cm of fabric ($3 per meter) and 300 cm of batting and bias tape ($25 per meter). Each mat requires 3 minutes of labour ($19.5 per hour). In 2017, production of 40,000 mats was produced using 197,750 meters of fabric ($594,600), 119,250 meters of batting and bias tape ($151,450) and 2,150 hours ($41,750).
Compute labour and material variances and mix and yield material variances and Explain why the variances happened.
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