Sound Sleep Mills uses a standard cost system. During May, Sound
Sleep manufactured 15,000 pillowcases, using 27,000 yards of fabric
costing $3.05 per yard and incurring direct labor costs of $19,140
for 3,300 hours of direct labor. The standard cost per pillowcase
assumes 1.75 yards of fabric at $3.10 per yard and 0.20 hours of
direct labor at $5.95 per hour.
1. Compute both the price variance and quantity variance
relating to direct materials used in the manufacture of pillowcases...