Question

I'm only missing these two questions , thank you for your help!

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 GLAR Required 6 Required 7 Required 8 What was the labor rate variance for March? The labor efficiency variance? (Do not rond your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Labor rate variance Labor efficiency variance $ 672 U < Required 5 Required 7 >

Answer 1

Material Quantity variance = (Actual quantity - Standard quantity) x Standard Price
$420 = Actual Quantity x $4 - $6720
Actual Quantity = 1785 yards

Actual Price = $5355 / $1785 = $3

Material Price Variance = (Actual price - Standard price) x Actual Quantity
= ($3 - $4) x 1785 = $1785 (F)

Standard Manufacturing overhead = $1092
Standard Labor hours = $1092 / 2 = 546 hours

Standard labour cost per hour = $4368 / 546 = $8 per hour

Total Standard cost = $6720 + $4368 + $1092 = $12180
Standard cost per backpack = $12180 / 420 = $29 per backpack

Actual cost per backpack = $29 - $0.15 = $28.85 per backpack
Total Actual Cost = 420 x $28.85 = $12117

Actual Labor cost = $12117 - $1407 - $5355 = $5355
Actual labor cost per hour = $5355 / 630 = $8.50 per hour

Direct Labor rate variance = (Actual rate - Standard rate) x Actual hours
= ($8.50 - $8) x 630 = $315 (U)