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e File Edit View History Bookmarks People Window Help Do Homework-brittany perez e Secure https://www.mathxl.com/St 42565988&que; 42546 Principles of Accounting II, ACC 2020 Fall 2017 brittany perez 12/12/1 Homework: Chapter 23 Homework core: 0 of 2 pts 23-19 (similar to) Superior Fender, which uses a standard cost system, 60113 (5 complete) Hw Score: 29%, 5 Question acoureng system, manufactred 20.000 boat %nders dring 2014, using 144.000 square feet of extruded wnyl pureased S1 vinyl per tender, at standard of S1 square foot. Production required 420 direct labor hours that cost $14.00 per hour. The direct materials standard was 7 square feet of direct labor hour per fender, at a standard cost of $13.00 per hour Compute the cost and efficiency variances for direct materials and direct labor . Does the pattem of variances suggest Supericr Fenders managers have been making trade-om with the cost variances. Select the required fomulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F unfavorable (U).(Abbreviations used AC actual cost, AQ-actual Dinect matriais cost variance Direct labor cost variance Choose from any list or enter any number in the input fields and then click Check Answer Clear All Check Answer " 2 3 4 5 6 7 8 9

Explanation / Answer

1) Calculation of Direct material cost variance :

Direct material cost variance = (Standard quantity * Standard price) - (Actual quantity * Actual price)

= ((20,000*7) * $1.1) - (144,000*$1)

= $10,000 Favorable

2) Calculation of Direct labour cost variance :

Direct labour cost variance = (Standard hours * Standard rate) - (Actual hours * Actual rate)

=((20,000*0.026) * $13) - (420*$14)

= (520*$13) - (420*$14)

= 880 Favorable

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