Longman Company manufactures shirts. During June, Longman mado 1,400 shirs and g

Question

Longman Company manufactures shirts. During June, Longman mado 1,400 shirs and gathored tho following additional data: (Click on the icon to view the data.) Read the requirements. 7. Calculate the diroct matorials cost varianco. Select the formula, then enter the amounts and compute the cost variance for direct meterials and identify whether the varianos is favorable (F) or unfavorable (U) Standard Costctuel Quantityateria's Cost Veriance Actual Data Table 2940 8. Calculate the direct materials eficiency variance Diroct matorials cost standard Diroct matorials officioncy standard Actual amount of fabric purchascd and usad Actual cost of fabria purchased and used Diroct labor cost standard Diroct labor officioncy standard Actual amount of diroct labor hours Actual cost of direct labar $9.00 por yard af fabric 220 yards per shirt 2,940 yards $27,195 $11.00 per DLHr 3.00 DLHr por shirt ,310 DLHr $48,548 Select the formula, then enter the amounts and compule the efficiency variance for direct materials and idantily whether the variance is favorable (F) or unfevorable (U). Actual QuantityY Standard Qu xStandard Coet Direct Materials Efficiency Variance 2940 9. Calculate the total direct marials variance and identity whether the variance is favorable or unfavorable The total direct matrials variance isunfavorable 10. Celculate the direct labor cost variance Soloct tho forrnula, than anter the amounts and computo the cost varianco far diroct labor and idontify whothor the varianoo is favorablo (F) ar unfavorablo (U) Print Done Actual Cost Direct Labor Cost Variance 4310 11. Calculale the direct labor eiciency variance. Requirements Soloct tho forrnula, than anter the amounts and computo tho officiancy varianco for diroat labor and identify whathor tho varianco is favorablo (F) or unfevorablo (U). Actual QuanityStanderd Quentty Standard CostDirect Labor Efficiancy Varianoe Calculate the following variances: 431 7.Direct materials cost varanca 8.Direct materials officiency varianco . Total direct matorials vananco 10. Drect labor cost variance 11. Direct labor fficioncy variance 12. Total direct labor varianco 12. Calculate the total direct lator variance and identify whethor the varianco is favorab'e or unfavorable. Choose from any list or enter any number in the input fields and then continue to the next question Print Done

Explanation / Answer

Material price variance AP (a) SP (b) Variance (c=b-a) AQ (d) Total variance (e=c*d) F/U Material price variance = (AP-SP)*AQ AP = Actual price per yard = $27,195 / 2,940 = $9.25 SP = Standard price per yard = $9.00 AQ = Actual quantity consumed = 2,940 F= Favourable U = Unfavourable Material price variance AP (a) SP (b) Variance (c=b-a) AQ (d) Total variance (e=c*d) F/U $                        9.25 $                     9.00 -0.25           2,940 -735 U Material quantity variance AQ (a) SQ (b) Variance (c=b-a) SP (d) Total variance (e=c*d) F/U Material quantity variance = (AQ-SQ)*SP AQ = Actual quantity consumed = 2,940 SQ = Standard quantity = 1,400 * 2.20 = 3,080 SP = Standard price per yard = $9.00 F= Favourable U = Unfavourable Material quantity variance AQ (a) SQ (b) Variance (c=b-a) SP (d) Total variance (e=c*d) F/U                          2,940                       3,080 140 $         9.00 1,260 F Total Material variance Total Actual Total Std Total variance F/U                        27,195                        27,720 525 F (2,940 * $9.25) (3,080 * $9.00) Labor Rate variance AR (a) SR (b) Variance (c=b-a) AH (d) Total variance (e=c*d) F/U Labor Rate variance = (AR-SR)*AH AR = Actual Rate per hour = $48,548 / 4,310 = $11.26 SR = Standard Rate per hour = $11.00 AH = Actual hours = 4,310 F= Favourable U = Unfavourable Labor Rate variance AR (a) SR (b) Variance (c=b-a) AH (d) Total variance (e=c*d) F/U $                      11.26 $                   11.00 -0.26 4310 -1120.60 U Labor Efficiency variance AH (a) SH (b) Variance (c=b-a) AR (d) Total variance (e=c*d) F/U Labor Efficiency variance = (AH-SH)*AR AH = Actual hours = 4,310 SH = Standard Hours = 1,400 * 3 = 4,200 SR = Standard Rate per hour = $11.00 F= Favourable U = Unfavourable Labor Efficiency variance AH (a) SH (b) Variance (c=b-a) SR (d) Total variance (e=c*d) F/U                          4,310                       4,200 -110 $       11.00 -1,210.00 U Total Labor variance Total Actual Total Std Total variance F/U                        48,531                        46,200 -2,330.60 U (4,310 * $11.26) (4,200 * $11.00)

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