Problem 23-3A Hopkins Clothiers is a small company that manufactures tall-men\'s

Question

Problem 23-3A Hopkins Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2014, 10,900 suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was 16,500 direct labor hours. All materials purchased were used Standard (per unit) Actual Cost Element Direct materials Direct labor Overhead 9 yards at $4.30 per yard 1.20 hours at $14.00 per hour 1.20 hours at $6.40 per hour (fixed $3.90; variable $2.50) $%49,800 fixed overhead $37,000 variable overhead $405,821 for 98,740 yards ($4.11 per yard) $198,762 for 13,880 hours ($14.32 per hour) Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $64,350, and budgeted variable overhead was $41,250 Compute the total, price, and quantity variances for (1) materials and (2) abor. (Round answers to O decimal places, e.g. 125.) (1) Total materials variance Materials price variance Materials quantity variance (2) Total labor variance Labor price variance Labor quantity variance s LINK TO TEXT VIDEO: SIMILAR PROBLEM

Explanation / Answer

Total Material variance Total Actual Total Std Total variance F/U 405821 421830 16009 F (10900*9*4.3) 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 unit = $4.11 SP = Standard price per unit = $4.3 AQ = Actual quantity consumed= 10900 F= Favourable U = Unfavourable Material price variance AP (a) SP (b) Variance (c=b-a) AQ (d) Total variance (e=c*d) F/U 4.109995949 4.3 0.190004051 98740 18761 F 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= 98740 SQ = Standard quantity = 10900*9 = 98100 SP = Standard price per unit = $4.3 F= Favourable U = Unfavourable Material quantity variance AQ (a) SQ (b) Variance (c=b-a) SP (d) Total variance (e=c*d) F/U 98740 98100 -640 4.3 -2752 U Total Labor variance Total Actual Total Std Total variance F/U 198762 183120 -15642 U (10900*1.2*14) 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 = $14.32 SR = Standard Rate per hour = $14 AH = Actual hours = 13880 F= Favourable U = Unfavourable Labor Rate variance AR (a) SR (b) Variance (c=b-a) AH (d) Total variance (e=c*d) F/U                   14.32 14                        -0.32 13880 -4442 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 = 13880 SH = Standard Hours = 10900*1.2 = 13080 SR = Standard Rate per hour = $14 F= Favourable U = Unfavourable Labor Efficiency variance AH (a) SH (b) Variance (c=b-a) SR (d) Total variance (e=c*d) F/U 13880 13080 -800 14 -11200 U Total Overhead variance Total Actual Total Std Total variance F/U 86800 97050 10250 F (49800+37000) (10900*1.2*2.5)+(16500*3.9)

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

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