Question

i Data Table Tipton Company manufactures shirts. During June, Tipton made 1.200 shirts and gathered the following additional data: (Click on the icon to view the data.) Read the requirements. 7. Calculate the direct materials cost variance. Select the formula, then enter the amounts and compute the cost variance for direct materials and identify whether the variance is favorable (F) or unfavorable (U). Direct materials cost standard Direct materials efficiency standard Actual amount of fabric purchased and used Actual cost of fabric purchased and used Direct labor cost standard Direct labor efficiency standard Actual amount of direct labor hours Actual cost of direct labor $6.00 per yard of fabric 1.50 yards per shirt 1,680 yards $10,500 $15.00 per DLHr 2.00 DLHr per shirt 2,520 DLHO $36,540 = Direct Materials Cost Variance Actual Cost 8. Actual Quantity Sole Standard Cost Standard Quantity als efficiency variance. the amounts and compute the efficiency variance for direct materials and identify whether the variance is favorable (F) or unfavorable (U). Standard Cost ) X - Direct Materials Efficiency Variance Print Done 9. Calculate the total direct materials variance and identify whether the variance is favorable or unfavorable. The total direct materials variance is variance is i Requirements 10. Calculate the direct labor cost variance. Select the formula, then enter the amounts and compute the cost variance for direct labor and identify whether the variance is favorable (F) or unfavorable (U) = Direct Labor Cost Variance Calculate the following variances: 7. Direct materials cost variance 8. Direct materials efficiency variance 9. Tolal direct materials variance 10. Direct labor cost variance 11. Direct labor efficiency varlance 12. Total direct labor variance Choose from any list or enter any number in the input fields and then continue to the next question. Print Done

Answer 1

7) Direct materials cost variance

(	Actual cost	-	Standard cost	)	*	Actual quantity	=	Direct Materials Cost Variance
(	$6.25	-	$6.00	)	*	1680	=	$420	Unfavorable (U)

Actual cost= $10500/1680= $6.25

8) Direct materials efficiency variance

(	Actual quantity	-	Standard quantity	)	*	Standard cost	=	Direct Materials Efficiency Variance
(	1680	-	1800	)	*	$6.00	=	$720	Favorable (F)

Standard quantity= 1200 shirts*1.50 yards per shirt= 1800 yards

9) Total direct materials variance

The total direct materials variance is

$300

Favorable

Total direct materials variance= $420 U+720 F= $300 Favorable

10) Direct labor cost variance

(	Actual cost	-	Standard cost	)	*	Actual quantity	=	Direct Labor Cost Variance
(	$14.50	-	15.00	)	*	2520	=	$1260	Favorable (F)

Actual cost= $36540/2520= $14.5 per DLHr

11) Direct labor efficiency variance

(	Actual quantity	-	Standard quantity	)	*	Standard cost	=	Direct Materials Efficiency Variance
(	2520	-	2400	)	*	$15.00	=	$1800	Unfavorable (U)

Standard quantity= 1200 shirts*2 DLHr per shirt= 2400 DLHr

12) Total direct labor variance

The total direct materials variance is

$540

Unfavorable

Total direct labor variance= $1260 F+1800 U= $540 U

NOTE:- If you have any problem regarding the answer please ask in the comment section.