Premium Textiles manufactures a luxury embroidered pillow. The following are the cost standards for the pillow: Data Table Cost Standards Direct materials (fabric) 3.0 yards per pillow at $8.00 per yard Direct labor 0.6 direct labor hours per pillow at $20.00 per hour Actual results from last month's production of 3,000 pillows are as follows: Data Table Actual Results Actual cost of 9,300 yards of direct material (fabric) purchased $74,400 Actual yards of direct material (fabric) used Actual wages for 1,850 direct labor hours worked Determine the actual cost per yard of fabric purchased. 8,800 yards $37,000

Premium Textiles manufactures a luxury embroidered pillow. The following are the cost standards for the pillow: Data Table Cost Standards Direct materials (fabric) 3.0 yards per pillow at $8.00 per yard Direct labor 0.6 direct labor hours per pillow at $20.00 per hour Actual results from last month's production of 3,000 pillows are as follows: Data Table Actual Results Actual cost of 9,300 yards of direct material (fabric) purchased $74,400 Actual yards of direct material (fabric) used Actual wages for 1,850 direct labor hours worked Determine the actual cost per yard of fabric purchased. 8,800 yards $37,000

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 on this accounting question?
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Kelly Fabrics manufactures a specialty monogrammed blanket. The following are the cost standards for this blanket: (Click the icon to view the standards.) Actual results from last month's production of 2,500 blankets are as follows: (Click the icon to view the actual results.) Read the requirements. Requirement 1. What is the standard direct material cost for one blanket? (Round your answer to the nearest cent.) The standard direct material cost for one blanket is Requirements 1. What is the standard direct material cost for one blanket? 2. What is the actual cost per yard of fabric purchased? 3. Calculate the direct material price and quantity variances. 4. What is the standard direct labor cost for one blanket? 5. What is the actual direct labor cost per hour? 6. Calculate the direct labor rate and efficiency variances. 7. Analyze each variance and speculate as to what may have caused that variance. 8. Look at all four variances together (the big picture). How might they all be…
Tipton Company manufactures shirts. During June, Tipton made 1,200shirts and gathered the following additional data: Direct materials cost standard $6.00 per yard of fabric Direct materials efficiency standard 1.50 yards per shirt Actual amount of fabric purchased and used 1,680 yards Actual cost of fabric purchased and used $10,500 Direct labor cost standard $15.00 per DLHr Direct labor efficiency standard 2.00 DLHr per shirt Actual amount of direct labor hours 2,520 DLHr Actual cost of direct labor $36,540 10. Calculate the direct labor cost variance. Select the formula, then enter the amounts and compute the cost variance for direct labor and identify whether the variance is favorable (F) or unfavorable (U). ( - ) × = Direct Labor Cost Variance ( - ) × = 11. Calculate the direct labor efficiency variance. Select the formula, then enter the amounts and compute the…
Tipton Company manufactures shirts. During June, Tipton made 1,200shirts and gathered the following additional data: Direct materials cost standard $6.00 per yard of fabric Direct materials efficiency standard 1.50 yards per shirt Actual amount of fabric purchased and used 1,680 yards Actual cost of fabric purchased and used $10,500 Direct labor cost standard $15.00 per DLHr Direct labor efficiency standard 2.00 DLHr per shirt Actual amount of direct labor hours 2,520 DLHr Actual cost of direct labor $36,540 7. Calculate the directmaterials cost variance. Select the formula, then enter the amounts and compute the cost variance for direct materials and identify whether the variance is favorable (F) or unfavorable (U). ( - ) × = Direct Materials Cost Variance ( - ) × = 8. Calculate the direct materials efficiency variance. Select the formula, then enter the amounts and…
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (plastic) 12 sq ft. $ 1.45 per sq. ft. $ 17.40 Direct labor 0.3 hr. $ 11.90 per hr. 3.57 Variable manufacturing overhead (based on direct labor hours) 0.3 hr. $ 2.30 per hr. 0.69 Fixed manufacturing overhead ($461,000 ÷ 922,000 units) 0.50 Parker Plastic had the following actual results for the past year: Number of units produced and sold 1,160,000 Number of square feet of plastic used 12,000,000 Cost of plastic purchased and used $ 16,800,000 Number of labor hours worked 320,000 Direct labor cost $ 3,744,000 Variable overhead cost $ 1,100,000 Fixed overhead cost $ 377,000 Required:Calculate Parker Plastic’s direct labor rate and efficiency variances. (Do not round intermediate calculations. Indicate the…
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Lana Kane Inc. has determined the following cost standards for the production of her short sweater-dresses: Standard Standard Standard Quantity Price or rate Cost Fabric 4 yards $4.50 per yard $22.00 Direct labor 2 hours $12.00 per hour $24.00 Actual results for last month were as follows: Number of dresses produced 12,000 dresses Direct labor hours worked 24,175 hours Yards of fabric purchased 50,000 yards Yards of fabric used in production 49,500 yards Cost of fabric purchased $217,404 Direct labor cost…
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…
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.)