In: Accounting

# Standard Costs, Decomposition of Budget Variances, Direct Materials and Direct Labor Haversham Corporation produces dress shirts....

1. Standard Costs, Decomposition of Budget Variances, Direct Materials and Direct Labor

Haversham Corporation produces dress shirts. The company uses a standard costing system and has set the following standards for direct materials and direct labor (for one shirt):

 Fabric (1.5 yds. @ $2.80)$4.20 Direct labor (1.1 hr. @ $20) 22.00 Total prime cost$26.20

During the year, Haversham produced 9,900 shirts. The actual fabric purchased was 14,750 yards at $2.74 per yard. There were no beginning or ending inventories of fabric. Actual direct labor was 11,010 hours at$19.50 per hour.

Required:

1. Compute the costs of fabric and direct labor that should have been incurred for the production of 9,900 shirts.

 Direct materials $fill in the blank 0e3850fbb03b03f_1 Direct labor$fill in the blank 0e3850fbb03b03f_2

2. Compute the total budget variances for direct materials and direct labor.

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Haversham Corporation produces dress shirts. The company uses a standard costing system and has set the following standards for direct materials and direct labor (for one shirt): Fabric (1.5 yds. @ $2.80)$4.20 Direct labor (1.1 hr. @ $20) 22.00 Total prime cost$26.20 During the year, Haversham produced 9,700 shirts. The actual fabric purchased was 14,450 yards at $2.76 per yard. There were no beginning or ending inventories of fabric. Actual direct labor was 10,790 hours at$19.50 per...