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In: Accounting

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 5.50 yards at $5.25 per yard Direct labor of 3.00 hours at $19.00 per hour Overhead applied per sleeping bag at $16.00 In the month of April, the company actually produced 5,200 sleeping bags using 27,300 yards of material at a cost of $6.10 per yard. The labor used was 11,700 hours at an average rate of $16.50 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

  • Requirement: TOTAL MATERIAL VARIANCE
  • Working

Actual DATA for

5200

units

Quantity (AQ)

Rate (AR)

Actual Cost

Direct Material

27300 yards

$              6.10

$        166,530.00

Standard DATA for

5200

units

Quantity (SQ)

Rate (SR)

Standard Cost

[A]

[B]

[A x B]

Direct Material

( 5.5 yards x 5200 units)=28600 yards

$                   5.25

$     150,150.00

  • Total Material variance

Total Material Variance

(

Standard Cost

-

Actual Cost

)

(

$           150,150.00

-

$          166,530.00

)

-16380

Variance

$            16,380.00

Unfavourable-U

  • ANSWER = $ 16,380 Unfavourable [Enter as Positive number]

ekkarill92 answered 1 year ago
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