Question

Exercise 11-9 Your answer is partialy correct. Try again Granger Band Uniforms uses a standard costing system. The standard material and labor costs for producing a marching band hat are as follows: Materials (0.90 yards x$12.20) $10.98 Direct labor (1.20 hours x $13.70) $16.44 Ouring May, the company produced 3,290 band hats; 4,340 yards of material were purchased for $44,702, and 3.300 yards of material were used in production. Aliso during May, 4,710 direct labor hours were worked at a cost of $61,230. Calculate material price and quantity variances and labor rate and efficiency variances. Indicate whether the vanances are favorabile or unfavorable. (Round intermediate calculations to 2 decimal places, e.g.15.25 and final answers to 0 decimal places, o.g. 125. Enter all variances as a positive number.) Material Price Varlance 6270 136 Unfavorable 3297 Material Quantity Variance Labor Rate Variance Labor Efficiency Variance 10439 Exercise 11-10 Roger Hospital is interested in analyzing averhead related to laundry sevices. The hospital administrator estimated that monthly foxed costs would be $94,270, and vaniable costs would be $3.50 per patient day. During the meeth of September, the hospital had 18,000 patient days. Total laundry costs were $161,900. Analyze laundry costs for the menth of September, using the procedures for calculating a controlilable overhead variance. Is the variance favorable or unfavorable? (Enter variance as a positive number.) Controlable Overhead Variance

Answer 1

Actual rate	10.30	Per yard	(44702/4340)
Direct material price variance =	(Standard rate -Actual rate ) * Actual quantity
Direct material price variance =	(12.20-10.30) * 3300
Direct material price variance =	6270	Favorable