During May, Joliet Fabrics Corporation manufactured 520 units of a special multilayer fabric with the...
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Accounting
During May, Joliet Fabrics Corporation manufactured 520 units of a special multilayer fabric with the trade name Stylex. The following information from the Stylex production department also pertains to May.
Direct material purchased: 18,200 yards at $1.40 per yard
$
25,480
Direct material used: 9,700 yards at $1.40 per yard
13,580
Direct labor: 2,300 hours at $9.17 per hour
21,091
The standard prime costs for one unit of Stylex are as follows:
Direct material: 20 yards at $1.37 per yard
$
27.40
Direct labor: 3 hours at $7.00 per hour
21.00
Total standard prime cost per unit of output
$
48.40
Required: Compute the following variances for the month of May. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).
