myMDC I Miami Dade Co Assignments Do Homework - JORGE CASTRO ACG2071 REF 11366 T
ID: 2572469 • Letter: M
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myMDC I Miami Dade Co Assignments Do Homework - JORGE CASTRO ACG2071 REF 11366 THURSDAY JORGE CASTRO .. 11/15/17 1:36 PM Homework: Chapter 12 Lab Score: 0.56 of 1 pt & P11-53B (similar to) 1 of 1 (1 complete) Hw Score: 55.56%, 0.56 of Question Help Karyn Fabrics manufactures a specialty monogrammed blanket. The following are the cost standards for this blanket: (Click the icon to view the standards.) Actual results from last month's production of 1,800 blankets are as follows: (Click the icon to view the actual results.) Read the 1010 14.00 13.10 )=5909 F First, determine the formula for the efficiency variance, then compute the efficiency variance for direct labor Actual hours x Standard hours allowed. x ( 900 1,010 1,540 U 14.00 Requirement 7. Analyze each variance and speculate as to what may have caused that variance. The The favorable DM price variance and unfavorable DM quantity variance may have been caused by purchasing inferior raw materials cause |less waste. more e Click to select your answer(s) and then click Check Answer. Clear All 2 parts remainingExplanation / Answer
Solution.
Q1.
Standard direct material cost of one blanket is ..
For one blanket 6 yard material required.
$8.50 is cost of one yard.
Standard direct material cost = 6 x $8.50 = $51
Q2.
Actual material purchase = 11,340 yard.
Cost of material purchase =$90,720.
Actual cost per yard of fabric purchase = $90,720 / 11,340 = $8 per yard.
Q3.
DM price variance = Actual quantity purchase x (Standard rate - Actual price)
11,340 x (8.50-8.00) = $5,670 F.
DM quantity variance = Standard price x (Standard quantity allowed - Actual quantity used)
$8.50 x (10,800 - 10,890) = $765 U.
Q4.
Standard hour for one blanket = 0.5 hour
Standard rate for one hour is $14
Standard labor cost for one blanket = 0.5 x $14 = $7 per blanket.
Q5.
Actual hour used = 1,010
Actual wages = $13,231
Actual DL wages per hour = $13,231 / 1,010 = $13.10 per hour.
Q6.
DL rate variance = Actual hour x (Standard rate - Actual rate )
1,010 x (14.00 - 13.10 ) = $909 F.
DL efficeancy variance = Standard rate x (Standard hour allowed - Actual hour )
$14.00 x (900 - 1,010 ) = $1,540 U.
.Q7.
The Favorable DM price variance and Unfavorable DM quantity variance may have been caused by purchasing inferior raw materials. the more expensive materials that are of a higher quantity cause less waste.
Q8.
Dm price variance and DL rate variance is favorable while due to extra unit use of DM direct labor hour incresed by 110 hour so DL effciency variance got unfavorable.
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