Rudd Clothiers is a small company that manufactures tall-men\'s suits. The compa
ID: 2336283 • Letter: R
Question
Rudd Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2017, 10,200 suits were produced. The following standad and actual cost data applied to the month of May when normal capacity was 17,500 direct labor hours. All materials purchased were used Cost Element Direct materials Direct labor Overhead Standard (per unit) Actual 6 yards at $4.00 per yard 1.10 hours at $13.00 per hour 1.10 hours at $6.30 per hour (fixed $3.80; variable $2.50) $234,840 for 61,800 yards ($3.80 per yard) S158,536 for 11,920 hours ($13.30 per hour) S49,000 fixed overhead S36,500 variable overhead Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $66,500, and budgeted variable overhead was $43,750 Compute the total, price, and quantity variances for(1) materials and (2) labor. (Round answers to 0 decimal places, e.g. 125.) (1) Total materials variance Materials price variance Materials quantity variance (2) Total labor variance Labor price variance Labor quantity variance Compute the total overhead variance Total overhead variance Click if you would like to Show Work for this question: Open Show WorkExplanation / Answer
a)
Actualoverhead=49,000+36,500
=85,500$
AppliedOverhead=11,920hrs*3.8$+11,920hrs*2.5$
=75,096$
F=FAVOURABLE,UF=UN FAVOURABLE
Veriance Formula calculation Result$ Total material veriance standerd quantity*standerd rate - Actual Quntity*actual rate 10,200units*6yards*4$ - 61,800yards*3.8$ 9,960F Material Price veriance Actual Quntity*(Standerd rate -actual rate) 61,800yards*(4-3.8)$ 12,360F Material Quantity Veriance Standerd quantity*standerd rate - Actual Quntity*Standerd rate 10,200units*6yards*4$ - 61,800yards*4$ 2,400UF 2 Total Labour veriance standerd Hours*standerd rate - Actual Hours*actual rate 10,200units*1.1hr*13$ - 11,920hr*13.3$ 12,676UF Labour Price Veriance Actual Hours*(Standerd rate -actual rate) 11,920hr*(13-13.3)$ 3,576UF Labour Quantity Veriance Standerd Hours*standerd rate - Actual Hours*Standerd rate 10,200units*1.1hr*13$ - 11,920hrs*13 9,100UF b Total overhead Veriance Actual Overhead - Applied OverheadActualoverhead=49,000+36,500
=85,500$
AppliedOverhead=11,920hrs*3.8$+11,920hrs*2.5$
=75,096$
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