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# 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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## This note was uploaded on 10/26/2009 for the course ACTP 5004 taught by Professor Montesarchio during the Summer '08 term at Nova Southeastern University.

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