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Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping...

Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows:

Direct material of 4.00 yards at $5.50 per yard

Direct labor of 3.00 hours at $18.00 per hour

Overhead applied per sleeping bag at $18.00

In the month of April, the company actually produced 4,900 sleeping bags using 25,000 yards of material at a cost of $5.30 per yard. The labor used was 11,500 hours at an average rate of $20.50 per hour. The actual overhead spending was $96,200.

Determine the materials price variance and round to the nearest whole dollar. Enter a favorable variance as a negative number. Enter an unfavorable variance as a positive number. Your Answer:

Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows:

Direct material of 5.50 yards at $5.25 per yard

Direct labor of 3.00 hours at $18.00 per hour

Overhead applied per sleeping bag at $18

In the month of April, the company actually produced 5,100 sleeping bags using 26,800 yards of material at a cost of $5.70 per yard. The labor used was 13,750 hours at an average rate of $20.50 per hour. The actual overhead spending was $96,200.

Determine the labor quantity variance and round to the nearest whole dollar. Enter a favorable variance as a negative number. Enter an unfavorable variance as a positive number. Your Answer:

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Answer #1

Answer:- Material price variance =$5000 Favorable.

Explanation-Material price variance = (Standard price – Actual price) * Actual quantity used

= ($5.50 per yard - $5.30 per yard)*25000 yards   

= $5000 Favourable

Answer- Direct Labor rate variance =$34375 Unfavorable.

Explanation-Direct Labor rate variance = (Standard rate – Actual rate) * Actual hours

= ($18.00 per hour – $20.50 per hour)* 13750 hours   

= $34375 Unfavorable

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