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Skootin’ Along Company manufactures skateboards in a local warehouse in Suburbia Conway. Manufacturing has 20 employees....

Skootin’ Along Company manufactures skateboards in a local warehouse in Suburbia Conway. Manufacturing has 20 employees. Each employee presently provides 35 hours of productive labor per week. Information about a production week is as follows:

Standard wage per hour                   $10.60

Standard labor time per skateboard           15 minutes

Standard number of feet of board per skateboard   4.0 feet

Standard price per foot of board           $2.90

Actual price per foot of board               $3.05

Actual feet of board used during the week       14,200 feet

Number of skateboards produced           3,500

Actual wage per hr.                   $10.00

Actual hours worked per week               700 hrs.

   Determine the price variance, quantity variance, and overall variance for both direct material and direct labor. Explain what the variances indicates and what are some possible causes for the variances?

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ekkarill92 answered 1 year ago
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