During March, Manhattan Fabrics Corporation manufactured 550 units of a special multilayer fabric with the trade...

During March, Manhattan Fabrics Corporation manufactured 550 units of a special multilayer fabric with the trade name Stylex. The following information from the Stylex production department also pertains to March. Direct material purchased: 18,500 yards at $1.43 per yard $ 26,455 Direct material used: 10,000 yards at $1.43 per yard 14,300 Direct labor: 2,600 hours at $9.20 per hour 23,920 The standard prime costs for one unit of Stylex are as follows: Direct material: 20 yards at $1.40 per yard $ 28.00 Direct labor: 3 hours at $7.00 per hour 21.00 Total standard prime cost per unit of output $ 49.00 Required: Compute the following variances for the month of March. Indicate whether each variance is favorable or unfavorable.

Expert Solution

	Standard			Actual
Particulars	Qty/ hours	Rate	amount	Qty/ hours	Rate	amount
Materials	11,000.00	1.40	15,400.00	18,500.00	1.43	26,455.00
Labour	1,650.00	7.0000	11,550.00	2,600.00	9.20	23,920.00

Actual output	550.00
Materials reqd (550*20)	11,000.00
Labour hrs reqd (550 * 3)	1,650.00

DMPV = (SP-AP)*AQ purchased
DMPV = (1.40 - 1.43)18500
DMPV = 555 U

DMQV= (SQ-AQ)SP
DMQV= (11000 - 10000)1.40
DMQV= 1400 F

DLRV= (SR-AR)AH
DLRV= (7 - 9.20)2600
DLRV= 5720 U

DLEV = (SH-AH)SR
DLEV = (1650 - 2600)7
DLEV = 6,650 U

ekkarill92 answered 2 years ago

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