BUS2102 -Spring 2018 -Chapter\'s8, 10&12 Fun &E; everything to 2 decimals places
ID: 2554515 • Letter: B
Question
BUS2102 -Spring 2018 -Chapter's8, 10&12 Fun &E; everything to 2 decimals places when needed. Show your workr Exercise 1) Deporte Company produces single-colored t-shirts. Material for the shirts are dyed in large vats. After dying the materials for a given color, the vats must be cleaned and for the next batch of materials to be colored. The following standards for changeover for a given batch have been established Direct materials (1.6lbs.@$0.95) Direct labor (0.75 hr. Standard prime cost $1.52 5.55 $7.07 chf $7.40) During the year, 50.000 pounds of material were purchased and used for the changeover activity. There were 30,300 batches produced. with the following actual prime costs Direct materials Direct labor $49,500 $169,875 (for 22,500 hrs.) Required: Compute MPV, MUV, LRV, and LEV. Box or circle your final answers!Explanation / Answer
Material price variance = (0.95*50000-49500) = 2000 U
Material usage variance = (30300*1.6-50000)*0.95 = 1444 U
Labour rate variance = (7.40*22500-169875) = 3375 U
Labour efficiency variance = (30300*.75-22500)*7.40 = 1665
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