Problem

During May, Joliet Fabrics Corporation manufactured 500 units of a special multilayer fabr...

During May, Joliet Fabrics Corporation manufactured 500 units of a special multilayer fabric with the trade name Stylex. The following information from the Stylex production department also pertains to May.

Direct material purchased: 18.000 yards at $ 1 .38 per yard

$ 24,840

Direct material used: 9.500 yards at $ 1.38 per yard

13,110

Direct labor: 2,100 hours at $ 9.15 per hour

19,215

The standard prime costs for one unit of Stylex are as follows:

Directmaterial:20 yards t $1.35 per yard

$ 27

Direct labor:4 hours at $9.00 per hour

36

Total standard prime cost per unit of output

$ 63

Required:Compute the following variances for the month of May. indicating whether each variance is favorable or unfavorable.

1. Direct-material price variance.

2. Direct-material quantity variance.

3. Direct-labor rate variance.

4. Direct-labor efficiency variance

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