Question

Question 8 View Policies Current Attempt in Progress Rudd Clothiers is a small company that manufactures tall-men's sults. The company has used a standard cost accounting system. In May 2020, 10,500 sults were produced. The following standard and actual cost data applied to the month of May when normal capacity was 14 500 direct labor hours. All materials purchased were used. Cost Element Direct materials Direct labor Overhead Standard (per unit) Actual yards at $4.50 per yard $419,320 for 95,300 yards ($4.40 per yard) 1.10 hours at $14.00 per hour $173,745 for 12.150 hours ($14.30 per hour) 1 10 hours at $6.30 per hour foed $3.70, variable $2.60) $49.100 fed overhead $37.500 variable overhead Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $53.650, and budgeted variable overhead was $37,700 Compute the total price and quantity arances for (1) materials and laboround priveste 2 decimal places, . 52.75 and final answers to decimal places, 52) (1) Total materiais variance Materials price variance Materials quantity variance (2) Total labor variance Labor price variance Labor quantity variance s

Answer 1

A) ..

	Actual Quantity * Actual Price /Rate	Actual Quantity * Standard Price / Rate	Standard Quantity *Standard Price / Rate
Direct Material	$ 419,320	$428,850 (95,300*$4.50)	$ 425,250 ((10,500 units * 9 yard )*$4.50
Direct Labor	$173,745	$ 170,100 (12,150*$ 14)	$ 161,700 ((10,500 units * 1.10 hour ) * $14

1. Material Variance

Particulars	Formula	Variance	F/U
Total Material Variance	(AQ * AP) - (SQ* SP)	$ 419,320 - $ 425,250 = $ 5,930	F
Material Price Variance	(AQ *AP) - (AQ * SP)	$419,320 - $428,850 = $ 9,530	F
Material Quantity Variance	(AQ * SP)- (SQ * SP)	$428,850 - $425,250 = $3,600	U

2. Labour Variance

Particulars	Formula	Variance	F/U
Total Labor Variance	(AH*AR) -(SH*SR)	$173,745 - $161,700 = $12,045	U
Labor Rate Variance	(AH*AR)- (AH*SR)	$173,745 - $ 170,100 = $ 3,645	U
Labor Efficiency Variance	(AH*SR)-(SH *SR)	$170,100 - $ 161,700 = $ 8,400	U

B ...The Total Overhead Variance

Actual Cost	$49,100 + $ 37,500 = $ 86,600
Budgeted Overhead Cost	(3.70 * 14,500 Standard Direct Labour hour + ($2.60 * 11,550 Standard Hours for Actual Units )) = $83,680
Total Overhead Variance	$ 2,920 U