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 varlance 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 8. Calculate the direct materials efficiency variance. Select the formula, then enter the amounts and compute the efficiency variance for direct materials and identify whether the variance is favorable (F) or unfavorable (U = Direct Materials Efficiency Varlance Print Done 9. Calculate the total direct materials variance and identify whether the variance is favorable or unfavorable. The total direct materials variance is i Requirements 10. Calculate the direct labor cost variance. Select the formula, then enter the amounts and compute the cast 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. Total direct materials variance 10. Direct labor cost variance 11. Direct labor efficiency variance 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

Direct material cost variance = Actual quantity*Standard price - Actual quantity*Actual price

Direct material cost variance = 1,680*$6 - 10,500 = $420 Unfavorable

Direct material efficiency variance = Standard quantity*Standard price - Actual quantity*Standard price

Direct material efficiency variance = 1,200*1.50*$6 - 1,680*$6

Direct material efficiency variance = $10,800 - 10,080 = $720 Favorable

Total direct material variance = Standard quantity*Standard price - Actual quantity*Actual price

Total direct material variance = $10,800 - 10,500 = $300 Favorable

Direct labor cost variance = Actual hours*Standard rate - Actual hours*Actual rate

Direct labor cost variance = 2,520*$15 - 36,540 = $1,260 Favorable

Direct labor efficiency variance = Standard hours*Standard rate - Actual hours*Standard rate

Direct labor efficiency variance = 1,200*2*$15 - 2,520*$15

Direct labor efficiency variance = $36,000 - 37,800 = $1,800 Unfavorable

Total direct labor variance = Standard hours*Standard rate - Actual hours*Actual rate

Total direct labor variance = $36,000 - 36,540 = $540 Unfavorable