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28 Sep 2019
Outdoor Company manufactures camping tents from a lightweightsynthetic fabric. Each tent has a standard materials cost of $21,consisting of 4 yards of fabric at $5.25 per yard. The standardscall for 2 hours of assembly at $10 per hour. The following datawere recorded for October, the first month of operations :
FABRIC PURCHASED 9000 YARDS X $5.00 PER YARD FABRIC USED IN PRODUCTION OF 1700 TENTS 7000 YARDS DIRECT LABOR USED 3600 HOURS X $10.75 PER HOUR
REQUIRED
A.) Compute all standard cost variances for material andlabor.
B.) Give one possible reason for each of the precedingvariances.
C.) Determine the standard variable cost of the 1700 tentsproduced, separated into direct materials and labor.
Outdoor Company manufactures camping tents from a lightweightsynthetic fabric. Each tent has a standard materials cost of $21,consisting of 4 yards of fabric at $5.25 per yard. The standardscall for 2 hours of assembly at $10 per hour. The following datawere recorded for October, the first month of operations :
| FABRIC PURCHASED | 9000 YARDS X $5.00 PER YARD |
| FABRIC USED IN PRODUCTION OF 1700 TENTS | 7000 YARDS |
| DIRECT LABOR USED | 3600 HOURS X $10.75 PER HOUR |
REQUIRED
A.) Compute all standard cost variances for material andlabor.
B.) Give one possible reason for each of the precedingvariances.
C.) Determine the standard variable cost of the 1700 tentsproduced, separated into direct materials and labor.
Beverley SmithLv2
28 Sep 2019
