Splish Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2020, 10,600 suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was 16,000 direct labor hours. All materials purchased were used. Cost Element Direct materials Direct labor Overhead (a) (1) 10 yards at $4.90 per yard (2) 1.20 hours at $13.00 per hour 1.20 hours at $6.40 per hour (fixed $3.60; variable $2.80) Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $57,600, and budgeted variable overhead was $44,800. 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 0 decimal places, e.g. 52.) Total materials variance Standard (per unit) Materials price variance Total labor variance Labor price variance Materials quantity variance $ Labor quantity variance $ $ Actual $ $501,020 for 106,600 yards ($4.70 per yard) $182,508 for 13,620 hours ($13.40 per hour) $49,200 fixed overhead $36,500 variable overhead $

Splish Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2020, 10,600 suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was 16,000 direct labor hours. All materials purchased were used. Cost Element Direct materials Direct labor Overhead (a) (1) 10 yards at $4.90 per yard (2) 1.20 hours at $13.00 per hour 1.20 hours at $6.40 per hour (fixed $3.60; variable $2.80) Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $57,600, and budgeted variable overhead was $44,800. 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 0 decimal places, e.g. 52.) Total materials variance Standard (per unit) Materials price variance Total labor variance Labor price variance Materials quantity variance $ Labor quantity variance $ $ Actual $ $501,020 for 106,600 yards ($4.70 per yard) $182,508 for 13,620 hours ($13.40 per hour) $49,200 fixed overhead $36,500 variable overhead $

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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