Sunland, Inc. makes high-quality swimsuits. During the year, the company produce

ID: 2511726 • Letter: S

Question

Sunland, Inc. makes high-quality swimsuits. During the year, the company produced 775 suits, using 1,141 yards of material, and the company purchased 995 yards of material for $4,916. The direct materials standard for the swimsuits allows 1.38 yards of material at a standard price of $6 per yard.

Calculate Sunland’s direct materials quantity variance for the year. (If variance is zero, select "Not Applicable" and enter 0 for the amounts. Round answer to 0 decimal places, e.g. 15.)

Direct material quantity variance=

Swifty Industries is a leading manufacturer of golf balls. Each golf ball requires 1 minute of direct labor time to complete. Swifty used 7,440 direct labor hours in July to produce 439,800 golf balls. Swifty’s standard labor rate is $15 per direct labor hour, and the actual labor rate in July was $13.09.

Calculate Swifty’s direct labor efficiency variance for July. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.)

Direct material quantity variance=

Explanation / Answer

1) Direct material quantity variance = (Standard quantity-actual quantity)Standard price

= (775*1.38-1141)*6

Direct material quantity variance = 429 Unfavorable

2) Direct labour efficiency variance = (Standard hour-actual hour)Standard rate

= (439800*1/60-7440)*15

Direct labour efficiency variance = 1650 Unfavorable

Navigate

Sunland, Inc. had pre-tax accounting income of $2100000 and a tax rate of 40% in

Sunland, Inc., makes and sells drum sets. Nick Ross, controller, is responsible

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.

Sunland, Inc. makes high-quality swimsuits. During the year, the company produce

Question

Explanation / Answer

Related Questions

Navigate