Total Per Set of Covers Direct materials $ 42,560 $ 22.40 ...
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Question
Accounting
Total
Per Set of Covers
Direct materials
$
42,560
$
22.40
Direct labor
$
51,300
27.00
Variable manufacturing overhead (based on direct labor-hours)
$
6,840
3.60
$
53.00
During August, the factory worked only 2,800 direct labor-hours and produced 2,000 sets of covers. The following actual costs were recorded during the month:
Total
Per Set of Covers
Direct materials (12,000 yards)
$
45,600
$
22.80
Direct labor
$
49,000
24.50
Variable manufacturing overhead
$
7,000
3.50
$
50.80
At standard, each set of covers should require 5.6 yards of material. All of the materials purchased during the month were used in production.
Required:
1. Compute the materials price and quantity variances for August.
2. Compute the labor rate and efficiency variances for August.
3. Compute the variable overhead rate and efficiency variances for August.
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