Penny Worth Band Uniforms uses a standard costing system. The standard material and labor costs for...

Penny Worth Band Uniforms uses a standard costing system. The standard material and labor costs for producing a marching band hat are as follows:

Materials (0.90 yards × $11.40)		$10.26
Direct labor (1.20 hours × $13.80)		$16.56

During May, the company produced 3,340 band hats; 3,870 yards of material were purchased for $41,022, and 3,050 yards of material were used in production. Also during May, 4,240 direct labor hours were worked at a cost of $59,360. Calculate material price and quantity variances and labor rate and efficiency variances. Indicate whether the variances are favorable or unfavorable.

Material price variance $ _______ (favorable or unfavorable)

Material Quantity variance $ _______ (favorable or unfavorable)

LAbor rate variance $ _______ (favorable or unfavorable)

Labor efficiency variance $ _______ (favorable or unfavorable)

Expert Solution

ekkarill92 answered 11 months ago

Cato Band Uniforms uses a standard costing system. The standard material and labor costs for producing...

Cato Band Uniforms uses a standard costing system. The standard material and labor costs for producing a marching band hat are as follows: Materials (0.90 yards × $12.00) $10.80 Direct labor (1.20 hours × $14.10) $16.92 During May, the company produced 3,800 band hats; 3,840 yards of material were purchased for $41,472, and 3,050 yards of material were used in production. Also during May, 4,460 direct labor hours were worked at a cost of $53,520. Calculate material price and quantity...

Riide, as discussed in the chapter opener, uses a costing system with standard costs for direct...

Riide, as discussed in the chapter opener, uses a costing system with standard costs for direct materials, direct labor and overhead costs. Two comments frequently are mentioned in relation to standard costing and variance analysis: “Variances are not explanations” and “Management’s goal is not to minimize variances.” Write a short memo (no more than two paragraphs) to Amber Wason and Jeff Stefanis, Riide’s co-founders, interpreting these two comments in the context of their electric bike business. After your memo, please...

Variable costing versus absorption costing. The Garvis Company uses an absorption-costing system based on standard costs....

Variable costing versus absorption costing. The Garvis Company uses an absorption-costing system based on standard costs. Variable manufacturing cost consists of direct material cost of $4.50 per unit and other variable manufacturing costs of $1.50 per unit. The standard production rate is 20 units per machine-hour. Total budgeted and actual fixed manufacturing overhead costs are $840,000. Fixed manufacturing overhead is allocated at $14 per machine-hour based on fixed manufacturing costs of $840,000÷60,000$840,000÷60,000 machine-hours, which is the level Garvis uses as...

Your Corporation uses a standard cost system to collect costs related to the production. The labor...

Your Corporation uses a standard cost system to collect costs related to the production. The labor standards for each unit are 1.2 hours at a standard cost of $18 per hour. During the month, employees work 34,000 hours in the production of 30,000 units. The total labor cost was $649,400. What is the efficiency (quantity) variance for the month? $37,400 unfavorable $37,400 favorable $36,000 unfavorable $36,000 favorable

Sal Company uses process costing system in its production. The material costs were 80% complete...

Sal Company uses process costing system in its production. The material costs were 80% complete and 55% conversion costs complete with respect to the 8,000 units in work in process at August 1. Additional 20,000 units were started during the month of August. During August, 18,000 units were completed and transferred to the next department. The material costs were 40% complete and 70% conversion costs complete with respect to the ending work in process at August 31. An analysis...

10-46 Variance analysis, material and labor Pharout Company uses a standard cost system. Job 007 was...

10-46 Variance analysis, material and labor Pharout Company uses a standard cost system. Job 007 was for the manufacture of 1,000 units of the product X. The company's standards for one unit of product X are as follows: QUANTITY Direct material Direct labor 10 ounces 5 hours PRICE $5 per ounce $10 per hour The job required 9,800 ounces of raw material costing $58,800. A favorable labor rate variance of $2,250 and an unfavorable labor efficiency variance of $1,000 also...

Company uses standard costing. Overhead is applied to products on the basis of standard direct labor...

Company uses standard costing. Overhead is applied to products on the basis of standard direct labor hours for actual production. Data for company follows: Standard direct labor hours allowed for actual output 110,000 Actual direct labor hours 115,000 Direct labor hours budgeted in the master budget 120,000 Budgeted total variable overhead cost $360,000 Actual variable overhead cost 328,000 1.Calculate the variable overhead spending variance and whether it is favorable or unfavorable. 2.Calculate the variable overhead efficiency variance and whether it...

an organization uses a job-order costing system. The company uses direct labor hour as the allocation...

an organization uses a job-order costing system. The company uses direct labor hour as the allocation base for applying manufacturing overhead cost to individual jobs. At the beginning of the year, the company’s estimated manufacturing overhead cost is $1,000,000 and the estimated number of labor hours is 200,000. At the end of the year, the company found that the actual manufacturing overhead cost is $1,200,000 and the actual number of labor hours is 250,000. 1. What is the predetermined overhead...

Owen limited uses a standard costing system. The standard cost card for one product is shown...

Owen limited uses a standard costing system. The standard cost card for one product is shown below. Direct material 4kg @$5 per kg 20 Direct labour 2 hour @ $8 per hour 16 Variable overhead 2 hours @ $3.5 per hour 7 Total variable cost 43 Fixed overhead 2 hours @ $7 per hour 14 Total production cost 57 Standard selling price 70 Standard profit margin 13 The budgeted output and sales was 1000 units. Actual production and...

HalimSdnBhd uses a standard costing system. The standard cost card for one product is shown below:...

HalimSdnBhd uses a standard costing system. The standard cost card for one product is shown below: Direct Material 4 kg at RM5 per kg RM 20 Direct Labor 2 hours at RM8 per hour 16 Variable Overhead 2 hours at RM 7.5 per hour15 Total Product Cost 51 The budgeted output and sales was 1,000 units. Actual output for the period was 1,300 units . Actual cost was as follows: Direct Material: 5,000 kg, costing 22,750 Direct Labor: 2,860 hours,...

Question