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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 ……..……..……..……..….. 9,000 yards x $5.00 peryard
Fabric used in production of 1,700 tents …….. 7,000 yards
Direct labor used ……..……..……..……..….. 3,600 hours x $10.75 perhour

Required
a. Compute all standard cost variances for materials andlabor.
b. Give one possible reason for each of the precedingvariances.
c. Determine the standard variable cost of the 1,700 tentsproduced, separated into direct materials and labor.

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Collen Von
Collen VonLv2
28 Sep 2019

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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.

Goldman Company manufactures shirts. During June​, Goldman made1 comma 600 shirts and gathered the following additional​ data:LOADING...​(Click on the icon to view the​ data.) Read therequirements LOADING....

7. Calculate the direct materials cost variance. Select the​formula, then enter the amounts and compute the cost variance fordirect materials and identify whether the variance is favorable​(F) or unfavorable​ (U). ( Actual Cost - ▼ ) x Actual Quantity =Direct Materials Cost Variance ( - ) x =

8. Calculate the direct materials efficiency variance. Selectthe​ formula, then enter the amounts and compute the efficiencyvariance for direct materials and identify whether the variance isfavorable​ (F) or unfavorable​ (U). ( Actual Quantity - ▼ ) xStandard Cost = Direct Materials Efficiency Variance ( - ) x =

9. Calculate the total direct materials variance and identifywhether the variance is favorable or unfavorable. The total directmaterials variance is .

10. Calculate the direct labor cost variance. Select the​formula, then enter the amounts and compute the cost variance fordirect labor and identify whether the variance is favorable​ (F) orunfavorable​ (U). ( Actual Cost - Standard Cost ) x ▼ = DirectLabor Cost Variance ( - ) x =

11. Calculate the direct labor efficiency variance. Select the​formula, then enter the amounts and compute the efficiency variancefor direct labor and identify whether the variance is favorable​(F) or unfavorable​ (U). ( Actual Quantity - Standard Quantity ) x▼ = Direct Labor Efficiency Variance ( - ) x =

12. Calculate the total direct labor variance and identifywhether the variance is favorable or unfavorable. The total directlabor variance is . Choose from any list or enter any number in theinput fields and then continue to the next question.

Data Table

Direct materials cost standard $7.00 per yard of fabric

Direct materials efficiency standard 1.70 yards per shirt

Actual amount of fabric purchased and used 2,620 yards

Actual cost of fabric purchased and used $18,602

Direct labor cost standard $12.00 per DLHr

Direct labor efficiency standard 3.00 DLHr per shirt

Actual amount of direct labor hours 4,890 DLHr

Actual cost of direct labor $57,702

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​related? What variance is very likely to have caused the other​ variances?

Dazzle Fabrics manufactures a specialty monogrammed blanket. The following are the cost standards for this​ blanket:

Data Table

Direct materials (fabric). . . . . . . . 2.0 yards per blanket at $7.00 per yard

Direct labor. . . . . . . . . . . . . . . . . 0.5 direct labor hours per blanket at $19.00 per hour

Actual results from last​ month's production of 2,400 blankets are as follows

Data Table

Actual cost of 6,240 yards of direct material (fabric) purchased. . . . . .$40,560

Actual yards of direct material (fabric) used. . . . . . . . . . . . . . . . . .5,540

Actual wages for 1,350 direct labor hours worked. . . . . . . . . . . . .$24,840

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