Round all per unit answers to nearest whole cent. a. Determine the standard cost

ID: 2381550 • Letter: R

Question

Round all per unit answers to nearest whole cent.

a. Determine the standard cost per dress for direct materials and direct labor. Round the cost per unit to two decimal places.

b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Use the minus sign to enter favorable variances as negative numbers.

c. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Use the minus sign to enter favorable variances as negative numbers.

Direct materials standard cost per dress: $ Direct labor standard cost per dress: $ Total standard cost per dress: $

a. Standard cost per dress:

Direct material standard cost per dress:
3.8 yards*$2.90 per yard = $11.02

Direct labor standard cost per dress:
12 minutes = 0.2 hours
$10.80 per hour*0.2 hours = $2.16

Total Standard Cost per dress:
$11.02 + $2.16 = $13.18

b. Direct materials variances:

Price variance = Actual quantity*(Actual price - Standard price) = 12,100*($2.75 - $2.90) = -$1815, which is $1815 favorable

Quantity variance = Standard price*(Actual Quantity - Standard Quantity) = $2.90*(12,100 - 3.8*3250) = -$725, which is $725 favorable

***note the standard quantity is the number of dresses made (3250) times the Standard amount of fabric per dress (3.8)

Total direct materials cost variance = 1815 favorable plus 725 favorable, which is $2540 favorable

c. Labor variances:

Rate variance = Actual hours*(Actual rate - standard rate) = 700*(11.00 - 10.80) = $140, which is $140 unfavorable

Time variance = STandard rate*(Actual hours - standard hours) = $10.80*(700 - 3250*0.2) = $540, which is $540 unfavorable

****note the standard hours comes from the number of dresses made (3250) times the standard amount of time per dress which is 12 minutes or 0.2 hours

Total diect labor cost variance = 140 unfavorable plus 540 unfavorable = $680 unfavorable

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