A certain window requires the decorators following

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Unformatted text preview: raperies manufactures curtains. A certain window requires the Decorator’s following: following: Direct materials standard 10 square yards at $5 per yard Direct mfg labor standard 5 hours at $10 During the second quarter, the company made 1,500 curtains and used 14,000 During square yards of fabric costing $68,600. Direct labor totals 7,600 hours for square Direct $79,800. $79,800. Required: compute the direct materials price and efficiency variances. Actual unit cost: $68,600 / 14,000 square yards = $4.90 per sq yard $4.90 yard Price Variance: 14,000 * ($5 – $4.90) = $1,400 Favorable Efficiency Variance: $5 * (14,000 – (1,500 * 10)) = $5,000 favorable Chapter 7 Flexible Budgets, Direct Cost Variances, and Management Control and Decorator’s Draperies manufactures curtains. A certain window requires the Decorator’s following: following: Direct materials standard 10 square yards at $5 per yard Direct mfg labor standard 5 hours at $10 During the second quarter, the company made 1,500 curtains and used 14,000 D...
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