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# Quality Guard, whid'r used a standard cost accounting system, manufactured 190,000 boat fenders during the year, using 1,620,000 feet ofextmded vinyl...

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Quality Guard, whid'r used a standard cost accounting system, manufactured 190,000 boat fenders during the year, using 1,620,000 feet ofextmded vinyl purchased at I
\$1.10 per foot Production required 4.700 direct labor hours that cost \$15.00 per hour The materials standard was 3 feet of vinyl per tender at a standard cost of \$1.15
per foot. The laborstanoard was 0.027 direct labor hour per tender at a standard cost of \$14 00 per hour. Read the muirements.
Requirement 1. Compute the price and quantity variances for direct materials. Compute the rate and efﬁciency variances for direct labor (Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your answers to the nearest whole dollar Label the variances as favorable (F) or unfavorable (Li).
Abbreviations used DM = Direct materials, Di. = Direct labor.) Begin with the variances for dired materials Firm, determine the fom'rula for the direct materials price variance. then compute the price variance for direct materials.
(Assume that the quantity of materials purchased is equal to the quantity of materials used.) x( - J = DMpricevariance
Xi - l = Determine the formula for the direct materials quantity variance then compute the quantity variance for direct materials. xt - ] = DM quantity variance x( - J: v Choose nom any list or enter any number in the input ﬁelds and then continue to the next question arch

Quality Guard, whidi used a standard cost accounting system‘ manufactured 190‘000 boat fenders during the year, using 1,620,000 feet nfextmded vinyl purchased at
\$1 10 per foot. Production required 4.700 direct labor hours that cost \$15.00 per hour. The materials standard was 3 feel of vinyl per tender at a standard cost of \$1.15
per foot. The labor standard was [1.027 direct labor hour per tender at a standard cost of \$14.00 per hour. Read the muirernents. Next. compute the variancesfor direct labor. First‘ determine the tormuia for the rate van‘ance, then compute the rate variance for direct labor. x( - )= DLratevaiiance
X( - i = Determine the formula for direct labor the eiﬁciency variance then compute the efﬁciency variance for direct iabor. x( - ) = DLelliciency variance
X( - i = Requirement 2. Does the pattern of variances suggest that the company's managers have been making trade-offs? Explain The V direct materials price variance combined with the 7 direct materials quantity variance suggests that managers may have used V materiais, The net effect is V Choose from any list or enter any number in the input ﬁeids and then continue to the next question [email protected], arch

Quality Guard. which used a standard cost accounting system manufactured 19U‘UIJD boat tenders during the year, using i‘BEIJJJDU feel utextruded vinyl purchased at
\$1 10 per foot Production required 4300 direct labor hours that coﬁ \$1500 per hour The materials standard was 8 feet of vinyl per fender at a standard cost of \$115
per foot. The labor standard was 0.027 direct labor hour per tender at a standard cost of \$14 00 per hour. Read the @uirenierrts,
| | &quot; \ | | I if I II I Determine the formula for direct labor the efﬁciency variance‘ then compute the efﬁciency variance for direct iabor. Xi ) = DLetliciency variance X( ) : Requirement 2. Does the pattem of variances suggest that the company's managers have been making trade-offs? Explain. The 1 direct materials price variance combined with the : direct mateIiais quantity variance suggests that managers may have used
V materials, The net effect is Y
The Y direct labor rate valiance combined with the direct iabor efﬁciency variance suggests that managers may have used workers who performed more efﬁcienﬂy The net elted is V Choose from any list or enter any number in the input ﬁeids and then continue to the next question. rch

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