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Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping...

Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows:

Direct material of 6.00 yards at $5.75 per yard

Direct labor of 3.00 hours at $17.00 per hour

Overhead applied per sleeping bag at $15.00

In the month of April, the company actually produced 5,200 sleeping bags using 27,300 yards of material at a cost of $5.10 per yard. The labor used was 11,700 hours at an average rate of $18.50 per hour. The actual overhead spending was $96,200.

Determine the total materials variance and round to the nearest whole dollar. Enter a favorable variance as a negative number. Enter an unfavorable variance as a positive number.

Solutions

Expert Solution

Total material variance = $40,170 Favorable

Standard DATA for 5200 Meals
Quantity (SQ) Rate (SR) Standard Cost
[A] [B] [A x B]
Direct Material ( 6 Yards x 5200 Meals)=31200 Yards $              5.75 $    1,79,400.00

.

Actual DATA for 5200 Meals
Quantity (AQ) Rate (AR) Actual Cost
Direct Material 27300 $            5.10 $   1,39,230.00

.

Material Price Variance
( Standard Rate - Actual Rate ) x Actual Quantity
( $                 5.75 - $                5.10 ) x 27300
17745
Variance $     17,745.00 Favourable-F
Material Quantity Variance
( Standard Quantity - Actual Quantity ) x Standard Rate
( 31200 - 27300 ) x $       5.75
22425
Variance $     22,425.00 Favourable-F
Total Material Variance
( Standard Cost - Actual Cost )
( $   1,79,400.00 - $ 1,39,230.00 )
40170
Variance $     40,170.00 Favourable-F

ekkarill92 answered 7 months ago
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